Quarterly Financial Statement as at 30 September 2001 ... - Euroland
Quarterly Financial Statement as at 30 September 2001 ... - Euroland
Quarterly Financial Statement as at 30 September 2001 ... - Euroland
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Quarterly</strong> <strong>Financial</strong> <strong>St<strong>at</strong>ement</strong><br />
1.11.<strong>2001</strong><br />
Carlsberg A/S Q3 Report <strong>2001</strong><br />
Page 1 of 9<br />
1 November <strong>2001</strong><br />
23/<strong>2001</strong><br />
<strong>Quarterly</strong> <strong>Financial</strong> <strong>St<strong>at</strong>ement</strong> <strong>as</strong> <strong>at</strong> <strong>30</strong> <strong>September</strong> <strong>2001</strong><br />
of the Carlsberg Group<br />
S<strong>at</strong>isfying results<br />
• Oper<strong>at</strong>ing profit amounts to DKK 2,769m against DKK 1,784m l<strong>as</strong>t year<br />
(+55%).<br />
• Growth in volume continues - beer: 51.5m hl (+16%) and soft drinks:<br />
15.6m hl (+31%).<br />
• In total, Western Europe exceeds expect<strong>at</strong>ions, however, the results in<br />
Sweden are disappointing.<br />
• E<strong>as</strong>tern Europe shows substantial profitable growth especially driven by<br />
the Russian activities.<br />
• Results <strong>as</strong> expected positively influenced by property gains in Carlsberg<br />
A/S.<br />
• Carlsberg Breweries h<strong>as</strong> carried out acquisitions in Poland and Turkey.<br />
• In the aggreg<strong>at</strong>e, Carlsberg A/S’ share of the results for the entire financial<br />
year is still expected to be somewh<strong>at</strong> above th<strong>at</strong> of l<strong>as</strong>t year (12 months),<br />
which is unchanged in rel<strong>at</strong>ion to the first half-year <strong>2001</strong> financial st<strong>at</strong>ement.<br />
Contact:<br />
Jørn P. Jensen, CEO<br />
Jesper C. Bærnholdt, CFO<br />
Phone: +45 3327 2727
Profit & loss account<br />
DKK million<br />
<strong>Quarterly</strong> <strong>Financial</strong> <strong>St<strong>at</strong>ement</strong><br />
1.11.<strong>2001</strong><br />
HIGHLIGHTS AND KEY FIGURES<br />
for the period 1 January – <strong>30</strong> <strong>September</strong> <strong>2001</strong><br />
(Unaudited)<br />
2000<br />
9 months<br />
<strong>2001</strong><br />
9 months Δ %<br />
Carlsberg A/S Q3 Report <strong>2001</strong><br />
Page 2 of 9<br />
2000<br />
3Q<br />
<strong>2001</strong><br />
3Q Δ %<br />
Turnover 28,890 35,052 +21 9,524 12,923 + 36<br />
Net turnover 21,379 25,954 +21 7,006 9,628 +37<br />
Oper<strong>at</strong>ing profit 1,784 2,769 +55 800 1,450 +81<br />
Special items 438 0 10 0 -<br />
Profit before financials 2,222 2,769 +25 810 1,450 +79<br />
<strong>Financial</strong>s, net -163 62 - -67 -181 -<br />
Profit before tax 2,059 2,831 +37 743 1,269 +71<br />
Group profit 1,526 2,111 +38 580 992 +71<br />
Profit, Carlsberg A/S’ share 1,481 1,192 -20 509 585 +15<br />
Balance sheet<br />
DKK million 31.12.00 <strong>30</strong>.09.01 Δ %<br />
Fixed <strong>as</strong>sets 20,695 24,798 +20<br />
Current <strong>as</strong>sets 14,296 14,726 +3<br />
- c<strong>as</strong>h <strong>at</strong> bank and in hand 2,900 2,238 -23<br />
Group equity 10,631 12,504 +18<br />
Provisions 3,131 3,622 +16<br />
Long term liabilities 6,009 5,573 -7<br />
Current liabilities 15,220 17,825 +17<br />
Balance sheet total 34,991 39,524 +13<br />
Net interest-bearing debt 10,<strong>30</strong>9 10,910 +6
Movements in Group equity<br />
Group equity <strong>as</strong> <strong>at</strong> 31.12.00 10,631<br />
Group profit 2,111<br />
Influx of Orkla’s beverage activities, incl. minority 1,595<br />
Dissolution of Coca-Cola Nordic Beverages (CCNB) incl.<br />
disposal minority -345<br />
Currency transl<strong>at</strong>ion adjustments, etc. -<strong>30</strong>9<br />
Write-off of Group goodwill -1,179<br />
Group equity <strong>as</strong> <strong>at</strong> <strong>30</strong>.09.01 12,504<br />
Minority interests <strong>as</strong> <strong>at</strong> <strong>30</strong>.09.01 4,379<br />
Carlsberg A/S' share of equity <strong>as</strong> <strong>at</strong> <strong>30</strong>.09.01 8,125<br />
The minority interests’ share of the equity amounted to DKK 4,379m against DKK<br />
1,651m <strong>as</strong> <strong>at</strong> 31.12.00. The incre<strong>as</strong>e is primarily rel<strong>at</strong>ed to Orkla's 40% ownership<br />
of Carlsberg Breweries A/S.<br />
The accounting policies applied remain unchanged from the annual accounts<br />
for 1999/00 although minor recl<strong>as</strong>sific<strong>at</strong>ions have been made due to, inter alia, the<br />
inclusion of Orkla’s beverage activities <strong>as</strong> <strong>at</strong> 1 January <strong>2001</strong>. For comparison with<br />
l<strong>as</strong>t year, ple<strong>as</strong>e note the changes in the Group‘s structure, including the addition<br />
of Orkla’s beverage activities and the changes in the cola business in the Nordic<br />
countries.<br />
Carlsberg's Asian activities are not yet included in Carlsberg Asia Holding Ltd. due<br />
to legal m<strong>at</strong>ters and pending authority approvals, and the results included in the<br />
accounts are therefore b<strong>as</strong>ed on Carlsberg’s legal structure in Asia prior to the<br />
establishment (<strong>as</strong> in 2000). As soon <strong>as</strong> Carlsberg's companies/activities <strong>as</strong> well <strong>as</strong><br />
the joint venture partner's Thai company are included in Carlsberg Asia Holding<br />
Ltd, the accounts will reflect this new legal structure <strong>as</strong> of January 2002.<br />
Comments on developments in the p<strong>as</strong>t period<br />
Profit & Loss Account<br />
Compared to l<strong>as</strong>t year, the period witnessed a 16% and 31% incre<strong>as</strong>e in the<br />
Carlsberg Group’s sale of beer and soft drinks. Net turnover amounts to DKK<br />
25,954m against DKK 21,379m in the same period l<strong>as</strong>t year (+21%). Most of the<br />
incre<strong>as</strong>e is due to E<strong>as</strong>tern Europe and the acquisition of Feldschlösschen and<br />
Türk Tuborg.<br />
<strong>Quarterly</strong> <strong>Financial</strong> <strong>St<strong>at</strong>ement</strong><br />
1.11.<strong>2001</strong><br />
Carlsberg A/S Q3 Report <strong>2001</strong><br />
Page 3 of 9
Oper<strong>at</strong>ing profit is DKK 2,769m against DKK 1,784m l<strong>as</strong>t year (+55%). The improvement<br />
in results is due to significant growth in E<strong>as</strong>tern Europe and Asia,<br />
where<strong>as</strong> Western Europe is slightly better than l<strong>as</strong>t year, primarily due to the inclusion<br />
of Feldschlösschen. To this is added a favourable effect from the sale of<br />
properties in Carlsberg A/S.<br />
<strong>Financial</strong>s amounts to DKK +62m. Adjusted for the gains from i.a. the sale of minority<br />
shareholdings in the Thai breweries (net DKK 518m), financials shows an<br />
expected net expenditure of approxim<strong>at</strong>ely DKK 550m. In the third quarter, the<br />
item is affected by interest expenses in connection with the financing of the acquisitions<br />
in Turkey and Poland.<br />
Profit before tax consequently totals DKK 2,831m against 2,059m l<strong>as</strong>t year<br />
(+37%).<br />
Group profit amounts to DKK 2,111m against DKK 1,526m l<strong>as</strong>t year, where<strong>as</strong><br />
Carlsberg A/S’ share of the profit amounts to DKK 1,192m against DKK 1,481m<br />
l<strong>as</strong>t year.<br />
Balance Sheet items<br />
During the period, the Group’s provisions were spent according to plans. DKK<br />
129m (against DKK 345m l<strong>as</strong>t year) h<strong>as</strong> been spent of the provisions in connection<br />
with Coca-Cola Nordic Beverages A/S (CCNB) and the compens<strong>at</strong>ion received<br />
in connection with the Allied Domecq agreement in 1995/96. DKK 100m of<br />
the gains from the sale of the Thai shares is still reserved to cover expenses in<br />
connection with the new structure in Asia.<br />
Net interest-bearing debt of DKK 10.9bn h<strong>as</strong> developed in line with expect<strong>at</strong>ions<br />
and is slightly above the level of 31.12.00.<br />
<strong>Quarterly</strong> <strong>Financial</strong> <strong>St<strong>at</strong>ement</strong><br />
1.11.<strong>2001</strong><br />
Carlsberg A/S Q3 Report <strong>2001</strong><br />
Page 4 of 9
Regions<br />
Below ple<strong>as</strong>e find the three regions of Carlsberg Breweries A/S shown with reference<br />
to pro forma compar<strong>at</strong>ive figures including Orkla’s beverage activities for the<br />
year 2000.<br />
Western Europe:<br />
DKK million<br />
2000 (*)<br />
9 months<br />
<strong>Quarterly</strong> <strong>Financial</strong> <strong>St<strong>at</strong>ement</strong><br />
1.11.<strong>2001</strong><br />
<strong>2001</strong><br />
9 months Δ %<br />
Carlsberg A/S Q3 Report <strong>2001</strong><br />
Page 5 of 9<br />
2000 (*)<br />
Q3<br />
<strong>2001</strong><br />
Q3 Δ %<br />
Net turnover 16,395 19,334 +17.9 5,752 6,997 +21.6<br />
Oper<strong>at</strong>ing profit 1,584 1,657 +4.6 675 810 +20.0<br />
Oper<strong>at</strong>ing margin (%) 9.7 8.6 -1.1 11.7 11.6 -0.1<br />
Beer sales (million hl) 19.1 20.4 +6.8 6.9 7.4 +7.2<br />
(*) Pro forma comparable figures for 2000<br />
Net turnover rose by DKK 2,939m (17.9%), which w<strong>as</strong> primarily due to the acquisition<br />
of Feldschlösschen (Switzerland).<br />
Oper<strong>at</strong>ing profit w<strong>as</strong> up on l<strong>as</strong>t year, which is <strong>at</strong>tributable to the acquisition of<br />
Feldschlösschen and to Sinebrychoff (Finland) and Carlsberg Denmark.<br />
In Denmark, beer sales stabilised, and despite slightly declining turnover, the results<br />
are above those of l<strong>as</strong>t year due to continued streamlining of business procedures.<br />
In Gre<strong>at</strong> Britain, Carlsberg-Tetley h<strong>as</strong> maintained its market share in a declining<br />
market with expected lower results. Following a weak start of the year, developments<br />
in 2 nd and 3 rd quarter have been more positive.<br />
In Switzerland, Feldschlösschen h<strong>as</strong> developed in line with expect<strong>at</strong>ions in a<br />
slightly declining market. The restructuring proceeds according to plans. The effect<br />
of this is expected in 2002.<br />
In Sweden, Carlsberg Sweden continued its neg<strong>at</strong>ive market development with<br />
lower and uns<strong>at</strong>isfactory earnings <strong>as</strong> a result. It is still expected th<strong>at</strong> the synergies<br />
in the integr<strong>at</strong>ion between Pripps and Falcon will be realised in 2002.<br />
In Finland, Sinebrychoff achieved progress in oper<strong>at</strong>ing profit due to incre<strong>as</strong>ing<br />
market share and improved productivity.<br />
In Norway, Ringnes showed modest progress in both volume and results.<br />
In Italy, Carlsberg Italy gained market share in a modestly incre<strong>as</strong>ing market due<br />
to the company’s acquisition of distribution companies.<br />
In Portugal, Unicer Bebid<strong>as</strong> h<strong>as</strong> maintained its market share in a weak market.
In Germany, Hannen is still working with a restructuring plan in order to improve<br />
the uns<strong>at</strong>isfactory results.<br />
E<strong>as</strong>tern Europe:<br />
DKK million<br />
2000 (*)<br />
9 months<br />
<strong>Quarterly</strong> <strong>Financial</strong> <strong>St<strong>at</strong>ement</strong><br />
1.11.<strong>2001</strong><br />
<strong>2001</strong><br />
9 months Δ %<br />
Carlsberg A/S Q3 Report <strong>2001</strong><br />
Page 6 of 9<br />
2000 (*)<br />
Q3<br />
<strong>2001</strong><br />
Q3 Δ %<br />
Net turnover 2,947 4,651 +57.8 1,181 2,085 +76.5<br />
Oper<strong>at</strong>ing profit 602 980 +62.8 267 521 +95.1<br />
Oper<strong>at</strong>ing margin (%) 20.4 21.1 +0.7 22.6 25.0 +2.4<br />
Beer sales (million hl) 17.4 22.9 +31.6 6.8 9.7 +42.6<br />
(*) Pro forma comparable figures for 2000<br />
Net turnover rose by 57.8% to DKK 4,651m which is due to growth in Baltic Beverages<br />
Holding (BBH), Vena and Svyturys <strong>as</strong> well <strong>as</strong> the consolid<strong>at</strong>ion of Türk<br />
Tuborg <strong>as</strong> of 1 July <strong>2001</strong>.<br />
Oper<strong>at</strong>ing profits incre<strong>as</strong>ed by 62.8% to DKK 980m against DKK 602m l<strong>as</strong>t year.<br />
The rise is primarily due to incre<strong>as</strong>ed organic growth in Russia during the third<br />
quarter.<br />
In BBH, net turnover rose by 61% to DKK 2,827m. The total volume growth of<br />
<strong>30</strong>% (44% in Q3) w<strong>as</strong> due to organic growth. BBH h<strong>as</strong> incre<strong>as</strong>ed its market share<br />
in Russia to 28%, corresponding to an incre<strong>as</strong>e of 2.1%-point on the same period<br />
l<strong>as</strong>t year.<br />
In Russia, Vena continued to show significant growth in volume and results.<br />
In Poland, the implement<strong>at</strong>ion of the new structure of Okocim h<strong>as</strong> been initi<strong>at</strong>ed<br />
and is expected to be ready to oper<strong>at</strong>e in Q2 2002. Market development h<strong>as</strong> been<br />
weak and results uns<strong>at</strong>isfactory. Pi<strong>as</strong>t h<strong>as</strong> been consolid<strong>at</strong>ed with effect <strong>as</strong> of 1<br />
August <strong>2001</strong>.<br />
In Turkey, Carlsberg Breweries h<strong>as</strong> incre<strong>as</strong>ed its shareholding in Türk Tuborg to<br />
82.46%. The company’s contribution to the oper<strong>at</strong>ing profit is modest.<br />
Asia:<br />
DKK million<br />
2000 (*)<br />
9 months<br />
<strong>2001</strong><br />
9 months Δ %<br />
2000 (*)<br />
Q3<br />
<strong>2001</strong><br />
Q3 Δ %<br />
Net turnover 1,339 1,448 +8.1 5<strong>30</strong> 490 -7.5<br />
Oper<strong>at</strong>ing profit 207 291 +40.6 105 122 +16.2<br />
Oper<strong>at</strong>ing margin (%) 15.5 20.1 +4.6 10.4 25.1 +14.7<br />
Beer sales (million hl) 7.9 8.1 +2.5 2.8 2.7 -3.6<br />
(*) Pro forma comparable figures for 2000<br />
Net turnover rose by 8.1% to DKK 1,448m. Most markets showed minor progress.
Oper<strong>at</strong>ing profit rose by DKK 84m to DKK 291m. Progress is primarily due to the<br />
sale of the loss-making brewery in China l<strong>as</strong>t year. Generally, results are below<br />
expect<strong>at</strong>ions.<br />
Other activities in Carlsberg Breweries<br />
Carlsberg Breweries h<strong>as</strong> initi<strong>at</strong>ed a number of results-improving projects in several<br />
companies. During the second half-year a similar project h<strong>as</strong> been initi<strong>at</strong>ed <strong>at</strong><br />
headquarters in Copenhagen, where the staff functions will be considerably reduced.<br />
Other activities in the Carlsberg Group<br />
Royal Scandinavia<br />
The <strong>as</strong>soci<strong>at</strong>ed company Royal Scandinavia (ownership 28%) shows a deficit.<br />
Royal Scandinavia is included in the oper<strong>at</strong>ing profit with DKK -47m, which is a<br />
higher deficit than l<strong>as</strong>t year. The carrying value of the shareholding in Royal Scandinavia<br />
is hence nil. A number of restructuring projects within the company are<br />
being carried out.<br />
Properties<br />
The oper<strong>at</strong>ing profit is affected by property gains of approxim<strong>at</strong>ely DKK 132m. The<br />
property area h<strong>as</strong> experienced a significantly higher level of activity in the present<br />
financial period than previously and this h<strong>as</strong> led to s<strong>at</strong>isfactory earnings.<br />
Expect<strong>at</strong>ions for the financial year <strong>2001</strong><br />
The annual report for 1999/00 expressed expect<strong>at</strong>ions th<strong>at</strong> Carlsberg A/S’ share of<br />
profit before special items this year would be in line with the comparable results for<br />
2000 (12 months) corresponding to DKK 1.2bn.<br />
However, due to the capital gains realized on the sale of the minority shareholdings<br />
in the Thai breweries, somewh<strong>at</strong> better results are expected for the current<br />
financial year compared to 2000 (12 months). The expect<strong>at</strong>ions thus remain unchanged<br />
compared to the half-year <strong>2001</strong> financial st<strong>at</strong>ement.<br />
Even though the Q3 development in results h<strong>as</strong> been above expect<strong>at</strong>ions, the expect<strong>at</strong>ions<br />
for the results for the full year are maintained. This is due to expect<strong>at</strong>ions<br />
of uns<strong>at</strong>isfactory results especially from the activities in Sweden, Poland and<br />
Turkey in Q4. Turkey will contribute modestly to oper<strong>at</strong>ing profit, where<strong>as</strong> expect<strong>at</strong>ions<br />
of incre<strong>as</strong>ed local financial expenses reduce the net results.<br />
<strong>St<strong>at</strong>ement</strong>s on future prospects in this financial st<strong>at</strong>ement reflect the management‘s<br />
expect<strong>at</strong>ions to future events and financial results <strong>as</strong> well <strong>as</strong> to the fluctu<strong>at</strong>ions<br />
in the most significant markets and to developments in the intern<strong>at</strong>ional<br />
money, currency and interest markets. <strong>St<strong>at</strong>ement</strong>s on future prospects will obviously<br />
always involve uncertainties and actual results may thus differ m<strong>at</strong>erially<br />
<strong>Quarterly</strong> <strong>Financial</strong> <strong>St<strong>at</strong>ement</strong><br />
1.11.<strong>2001</strong><br />
Carlsberg A/S Q3 Report <strong>2001</strong><br />
Page 7 of 9
from those projected. Therefore, it is essential to bear in mind th<strong>at</strong> a number of<br />
comprehensive integr<strong>at</strong>ion, r<strong>at</strong>ionalis<strong>at</strong>ion and restructuring projects were<br />
launched this year in Western Europe in particular and this contributes to the uncertainty<br />
<strong>as</strong> to expect<strong>at</strong>ions regarding results. The synergies included in the expect<strong>at</strong>ions<br />
for the results this year are limited, and, all things considered, the accrual<br />
of total income and expense is deemed uncertain due to the comprehensive<br />
n<strong>at</strong>ure of the projects. In Asia, Carlsberg’s activities are still not finally included in<br />
Carlsberg Asia Holding Ltd.<br />
As a result of the above, significant changes in income and costs between <strong>2001</strong><br />
and 2002 may occur.<br />
This financial st<strong>at</strong>ement is available in Danish and English. In c<strong>as</strong>e of doubt, the<br />
Danish version shall apply.<br />
<strong>Quarterly</strong> <strong>Financial</strong> <strong>St<strong>at</strong>ement</strong><br />
1.11.<strong>2001</strong><br />
Carlsberg A/S Q3 Report <strong>2001</strong><br />
Page 8 of 9<br />
Appendix
Appendix:<br />
<strong>Quarterly</strong> <strong>Financial</strong> <strong>St<strong>at</strong>ement</strong><br />
1.11.<strong>2001</strong><br />
Q1 Q2 Q3 Q4<br />
DKK million 2000 <strong>2001</strong> 2000 <strong>2001</strong> 2000 <strong>2001</strong> 2000<br />
Turnover 6,960 9,386 12,406 12,743 9,524 12,923 9,417<br />
Net turnover 5,211 7,033 9,162 9,293 7,006 9,628 7,040<br />
Oper<strong>at</strong>ing profit 82 132 902 1,187 800 1,450 579<br />
Special items 214 0 214 0 10 0 -10<br />
Profit before financials 296 132 1,116 1,187 810 1,450 569<br />
<strong>Financial</strong>s, net -83 408 -13 -165 -67 -181 -17<br />
Profit before tax 213 540 1,103 1,022 743 1,269 552<br />
Group profit 247 366 699 753 580 992 332<br />
Profit, Carlsberg A/S’ share 278 198 694 409 509 585 <strong>30</strong>1<br />
Net interest-bearing debt 10,103 10,498 10,910 10,<strong>30</strong>9<br />
Western<br />
Europe<br />
E<strong>as</strong>tern<br />
Europe Asia<br />
Carlsberg A/S Q3 Report <strong>2001</strong><br />
Page 9 of 9<br />
Not alloc<strong>at</strong>ed<br />
CB A/S<br />
in total* Other In total<br />
Q1 <strong>2001</strong><br />
Net turnover 5,<strong>30</strong>1 966 615 151 7,033 0 7,033<br />
Oper<strong>at</strong>ing profit -13 91 126 -95 109 23 132<br />
Oper<strong>at</strong>ing margin (%) -0.2 9.4 20.5 1.5 1.9<br />
Q2 <strong>2001</strong><br />
Net turnover 7,036 1,600 343 314 9,293 0 9,293<br />
Oper<strong>at</strong>ing profit 860 368 43 -111 1,160 27 1,187<br />
Oper<strong>at</strong>ing margin (%) 12.2 23.0 12.5 12.5 12.8<br />
Q3 <strong>2001</strong><br />
Net turnover 6,997 2,085 490 56 9,628 0 9,628<br />
Oper<strong>at</strong>ing profit 810 521 122 -157 1,296 154 1,450<br />
Oper<strong>at</strong>ing margin (%) 11.6 25.0 25.1 13.5 15.1<br />
* Carlsberg Breweries A/S in total