Financial Review
43
Capital expenditure and cash flow
2023
2022
Introduction
61%
75%
Cash conversion ratio
Capital expenditure related to PP&E and intangible assets (capex)
In millions of
2023
2022
Purchase of property, plant and equipment
2,434
1,791
243
220
2,677
2,011
Financial structure and liquidity
In millions of
2023
2022
41
42
4
4
1
1
833
2
798
2
Gross debt
33
31
Other liabilities
19
20
Total equity and liabilities
100
100
Sustainability
Review
Other
Information
Financial
Statements
Report
of the
Supervisory
Board
Report
of the
Executive
Board
Net profit (beia) declined 4.3% organically to €2.6 billion (2022: €2.8 billion). The gains from higher operating
profit, higher profits from associates and joint ventures and lower minority interests and income taxes were more
than offset by a significant increase in other net financing expenses and higher interest expense.
Exceptional items and amortisation of acquisition-related intangibles (eia)
The 2023 exceptional items and amortisation of acquisition-related intangibles on net profit and loss amount to
€329 million net expense (2022: €155 million net expense). This amount consists of:
- €385 million (2022: €333 million) of amortisation of acquisition-related intangibles and inventory recorded in
operating profit, of which 317 million in amortisation, depreciation and impairments (2022: €333 million) and
€68 million in raw material consumables and services (2022: nil).
- €829 million net exceptional expense (2022: €114 million net benefit) recorded in operating profit. This includes:
- a net impairment of €683 million recorded in amortisation, depreciation and impairments, including
impairment of €491 million for Heineken Beverages (total net impairment reversal in 2022: €1 32 million).
- €209 million exceptional expense related to the recycling of foreign currency translation reserve upon selling
the Russia disposal group recorded in amortisation, depreciation and impairments and €195 million of
exceptional gain on sale of Vrumona B.V. (Vrumona) recorded in other income.
- net restructuring expenses recorded in personnel expenses of €130 million (2022: €70 million).
- €40 million exceptional benefit recorded in other income related to tax credits in Brazil (2022: €44 million net
benefit as reduction recorded in marketing expense related to tax credits in Brazil).
- €50 million net exceptional expense relating to hyperinflation accounting adjustments (2022: €44 million), of
which €55 million income recorded in revenue (2022: €25 million), €69 million expense in raw materials
consumables and services (2022: €54 million), €32 million expense in amortisation, depreciation and
impairments (2022: €13 million) and €4 million in personnel expenses (2022: €2 million).
- €8 million of other exceptional net benefits (2022: €52 million of other exceptional net benefits).
- €30 million of exceptional net finance expenses, mainly related to €125 million of exceptional net expense
related to the one-off impact of the devaluation of the Nigerian Naira, €76 million of exceptional net benefit
related to the net monetary gain resulting from hyperinflation, €30 million of exceptional net benefit mainly
related to interest on tax credits in Brazil and €11 million other exceptional net finance expenses (2022: €106
million, exceptional net finance benefit, mainly related to the net monetary gain resulting from hyperinflation of
€94 million).
- €52 million of exceptional net expense (2022: €40 million net expense) included in the share of profit of
associates and joint ventures, mainly relating to the amortisation of acquisition-related intangible assets.
- €831 million of exceptional net benefit in income tax expense, mainly related to the recognition of previously
unrecognised deferred tax assets in Brazil of €661 million (2022: €8 million of exceptional net expense in income
tax expense.
- Total amount of eia allocated to non-controlling interests amounts to €136 million net benefit (2022: €6 million,
net benefit).
Net profit
Net profit was €2.3 billion (2022: €2.7 billion). The negative impact of exceptional items and amortisation of
acquisition related intangibles on net profit in 2023 was €329 million (2022: €155 million), where the higher
exceptional expenses in operating profit were partially offset by the exceptional benefits from the recognition of
€661 million of previously unrecognised deferred tax assets in Brazil.
Earnings per share - diluted
Earnings per share - diluted decreased to 4.09 (2022: 4.66). Earnings per share - diluted (beia) decreased by
5.2% from €4.92 to €4.67.
Free operating cash flow amounted to €1,759 million (2022: €2,409 million) 2022, mainly due to higher CAPEX,
interest and income taxes paid.
Total equity
Deferred tax liabilities
Post-retirement obligations
Provisions
22,789
2,213
586
21,920
2,138
568
6,127
(146)
(32)
5,949
(1,519)
4,430
(2,671)
1,759
(905)
(816)
38
6,347
(480)
(207)
5,660
(1,164)
4,496
(2,087)
2,409
(199)
(3,127)
(917)
Heineken
N.V.
Annual
Report
2023
Purchase of intangible assets
Capital expenditure related to PP&E and intangible assets (capex)
18,238
10,494
55,153
16,377
10,605
52,406
In millions of
Cash flow from operations before changes in working capital and
provisions
Total change in working capital
Change in provisions and post-retirement obligations
Cash flow from operations
Cash flow related to interest, dividend and income tax
Cash flow from operating activities
Cash flow used in operational investing activities
Free operating cash flow
Cash flow used in acquisitions and disposals
Cash flow used in financing activities
Net cash flow
Capital expenditure related to property, plant and equipment and intangible assets (CAPEX) amounted to
€2,677 million (2021€2,011 million) representing 8.8% of net revenue (beia). The investments in the year
include returnable packaging materials across several markets and capacity expansion in Brazil.
