HEINEKEN'S PROFIT IN LINE
WITH EXPECTATION
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VIETNAM BREWERY TRIPLES
ITS BREWING CAPACITY
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Heineken N.V. net profit for 1996 was
NLG 655 million, 1.4% below the net
profit for 1995 (NLG 664 million). The
earnings were in line with the fore
cast made by Heineken in September
last year. Net turnover rose by 20%
to NLG 12,189 million, of which 15%
is attributable to newly consolidated
companies, including the Fischer
Group and Groupe Saint-Arnould in
France and Birra Moretti in Italy. For
1997 a profit growth is expected. The
amount of the profit growth cannot
be predicted at the present moment.
The world beer market grew by
approx. 1.4%. Total sales of beer bre
wed under the supervision of
Heineken increased by approximate
ly 10% to 70.7 million hectolitres.
Sales of the Heineken brand were up
by 4.6% to 17.9 million hectolitres.
Amstel did well to maintain its sales
volume of 6.9 million hectolitres in a
declining market segment. Murphy's
showed a significant growth. The
development of exports, which were
10% up on the previous year, was a
particularly positive feature.
Beer consumption was lower in
most European markets, where the
Company's sales suffered from the
moderate weather and the weak
economy in a number of countries,
as a result of which total sales, exclu
ding acquisitions, were 0.9 million
hectolitres down compared with
1995. This was largely offset by the
rise in sales volumes in America and
Asia.
In Central Africa, particularly in
Zaïre, Burundi and Rwanda, the
situation is particularly difficult.
Mr. Vuursteen, Chairman of the Ex
ecutive Board: "The developments in
that area are a source of great con
cern to us. Accordingly we wish to
express our appreciation to the
employees, who are working there
under very difficult conditions".
In 1996, NLG 2.1 billion was
invested in fixed assets and acquisi
tions. In addition, further steps were
taken to reinforce the strength of our
brands by increasing marketing
expenditure. Furthermore, within
the framework of the efforts towards
further cost effectiveness a number
of restructuring measures are in
progress. The provisions for these
measures in 1996 were considerably
higher than in 1995. Moreover, inte
gration of the newly acquired brew
eries in France and Italy with the
existing operations in those coun
tries was started in 1996.
Early in 1997 it was party time at
Vietnam Brewery. The brewery's
capacity expansion to 1.5 million
hectolitres a year had been complet
ed and was celebrated during a spe
cial festive meeting.
The brewery, which brews Tiger
and Heineken, was officially opened
in 1995. Even at that time it was al
ready clear that its initial capacity
(half a million hectolitres) would not
be sufficient to meet the growing
Pictured, from left: Le Thanh Hai, Le Hinh
Chau, Chairman of Vietnam Brewery Ltd.,
Koh Poh Tiong, CEO of Asia Pacific
Breweries ltd., and Maarten Rijkens,
Heineken Regional Director, Jointly unveil
a plaque to mark the completion of the
expansion project.
demand. Work on the brewery's
expansion was therefore started
immediately.
During the festive gathering Le
Thanh Hai, Chairman of the Ho Chi
Minh City's People's Committee, had
words of praise for the success of the
company and for the contribution
that Vietnam Brewery has made to
the economic development of his
city. One of the success factors, he
said, was the close bond that exists
between the Vietnamese and foreign
partners.
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