Notes to the Consolidated Financial Statements (continued)
6.7 Earnings per share
7 Working capital
7.1 Inventories
O O Qs
Report of the Executive Board
Report of the Supervisory Board
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019
Other Information
The calculation of earnings per share for the period ended 31 December 2019 is based on the profit
attributable to the shareholders of the Company (net profit) and the weighted average number of shares
outstanding (basic and diluted) during the year ended 31 December 2019.
In per share (basic or diluted) for the period ended 31 December
2019
2018*
Basic earnings per share
3.78
3.36
Diluted earnings per share
3.77
3.35
Restated for IAS 37. Refer to note 4 for further details.
Refer to the table below for the information used in the calculation of the basic and diluted earnings
per share.
Weighted average number of shares - basic and diluted
2019
2018
Total number of shares issued
576,002,613
576,002,613
Effect of own shares held
(2,359,062)
(5,856,544)
Weighted average number of basic shares outstanding
for the year
573,643,551
570,146,069
Dilutive effect of share-based payment plan obligations
573,560
517,563
Weighted average number of diluted shares outstanding
for the year
574,217,111
570,663,632
Accounting policies
HEINEKEN presents basic and diluted earnings per share (EPS) data for its shares. Basic EPS is calculated by
dividing the profit or loss attributable to shareholders of the Company by the weighted average number of
shares outstanding during the year, adjusted for the weighted average number of own shares held in the
year. Diluted EPS is determined by dividing the profit or loss attributable to shareholders by the weighted
average number of shares outstanding, adjusted for the weighted average number of own shares held in the
year and for the effects of all dilutive potential shares which comprise share rights granted to employees and
the Executive Board.
Inventory balances include raw and packaging materials, work in progress, spare parts, goods for resale and
finished products.
In millions of
2019
2018
Raw materials
403
351
Work in progress
252
228
Finished products
488
426
Goods for resale
339
323
Non-returnable packaging
283
230
Other inventories and spare parts
448
362
2,213
1,920
During 2019 inventories were written down by €7 million to net realisable value (2018: €25 million).
Accounting policies
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based
on weighted average cost, and includes expenditure incurred in acquiring the inventories, production
or conversion costs and other costs incurred in bringing them to their existing location and condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses.
