Financial review
1995 1996 1997 1998 1999
Net financial expenses (xEuro 1 million)
2,000 j
1,500--
1,000
500
0
Capital expenditures/
Cash flow
in millions
Capital expenditures
Cashflow
5 j Interest coverage ratio
4-
1995 1996 1997 1998 1999
Net financial expense
Net financial expense rose to Euro 366.2
million (1998: Euro 245.0 million),
mainly caused by the consolidation and
financing of acquisitions. The interest
coverage ratio was 3.91 (1998: 4.18).
Tax rate
In 1999, Euro 283.0 million was
reserved for income tax. The tax rate,
expressed as a percentage of pre-tax
earnings, totaled 27.0% (1998: 25.5%)
due to better results in countries with
a relatively high tax rate.
Equity position
At year-end 1999, the balance sheet
total increased to Euro 14.3 billion
(1998: Euro 11.4 billion), reflecting the
consolidation of acquisitions and invest
ment in existing business. Stockholders'
equity amounted to Euro 2.1 billion (at
1998 year-end: Euro 1.6 billion). Added
to stockholders' equity was paid-in capital
attributable to optional dividends (Euro
226 million), exercised option rights
(Euro 21 million) and retained earnings
(Euro 424 million). Goodwill amounting
to Euro 373 million was charged in full
to stockholders' equity. The positive
impact of exchange rate fluctuations
(Euro 278 million) was added to stock
holders' equity. Group equity - stockholders'
equity and minority interests - increased
from Euro 1.8 billion to Euro 2.5 billion.
Capital accounts totaled Euro 3.3 billion
(1998: Euro 2.7 billion), that is 23.3%
of the balance sheet total (1998: 23.2%).
Interest-bearing debt rose to Euro 6.0
billion (1998: Euro 4.8 billion). The ratio
between interest-bearing debt, net of
cash, and group equity (net gearing)
amounted to 206% (1998: 238%).
The ratio of current assets to current
liabilities was 84% (1998: 87%).
Approximately Euro 300 million of the
cash balance total of Euro 888 million
is considered as committed to daily
operations.
1999
1998
Interest income
58.6
76.4
Interest expenses
(420.8)
(319.5)
Exchange rate differences
(6.5)
(1.9)
Other financial income
2.5
-
Total
(366.2)
(245.0)
46 Royal Ahold Annual Report 1999
