Annual Report 2001 - Carlsberg Group

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Financial Review of the Carlsberg Group 69 costs in connection with the integration of the two companies. Carlsberg-Tetley achieved results that were better than expected although below the level of last year. Carlsberg’s Finnish company Sinebrychoff achieved significant progress in profit and gained market share, which was also the case for Carlsberg Italia, although not to the same extent. The newly acquired companies in Turkey and Poland operated in weak markets and presented unsatisfactory results. The Group’s other companies achieved results slightly above the level of last year in line with expectations. The sections below provide further details on developments in both net turnover and operating profit in the individual regions within Carlsberg Breweries, including Orkla’s beverage activities. These regions account for all net turnover in the Carlsberg Group as well as for net DKK 3,077m of operating profit. Western Europe: DKK million 2000 (*) 2001 ∆ % Net turnover 22,567 26,294 +16.5 Operating profit 1,799 1,899 +5.6 Operating margin (%) 8.0 7.2 -0.8 Beer sales (million hl) 25.3 27.2 +7.5 Soft drink sales (million hl) 13.9 17.4 +25.2 (*) Pro forma comparative figures for 2000 (12 months) Net turnover rose by DKK 3,727m (16.5%), primarily due to the acquisition of Feldschlösschen, Switzerland, which was only included with one month in the year 2000. Operating profit was up on last year, which is attributable to the acquisition of Feldschlösschen as well as significant profit growth in Sinebrychoff, Finland. The operating margin declined from 8.0% in 2000 to 7.2% in 2001, mainly due to the unsatisfactory results in Sweden. If Sweden were excluded, operating margin in 2001 would amount to 8.7% against 8.6% in 2000. In Denmark, beer and soft drink sales showed a slightly declining trend. Results are in line with last year, i.a. due to continued streamlining of business procedures. Carlsberg Danmark is currently working on the integration of the Coca-Cola business, and activities are proceeding according to plans. In the United Kingdom, Carlsberg-Tetley achieved a moderate increase in market share in an otherwise stagnating market, and results were better than expected although below the level of last year. A weak start to the year was followed by a more positive trend in the subsequent quarters. In Switzerland, Feldschlösschen registered a more favourable development than expected and thus contributes satisfactorily to the results. The restructuring is proceeding according to plans and the effect of this process is still expected in 2002. In Sweden, Carlsberg Sverige realised unsatisfactory earnings. The negative market trend, primarily during the first six months of the year, was one of the main reasons for this development in results, but large, unexpected costs in connection with the integration of Falcon and Pripps and the introduction of Pepsi also affected results negatively. The integration of the breweries requires substantial resources and the related synergies are expected to be realised in 2002 and 2003. In Finland, Sinebrychoff achieved significant progress in profit due to increasing market share and increased productivity. During the year, the company integrated the Coca-Cola business into its organisation and thus improved efficiency. In Norway, Ringnes achieved modest growth in profit despite a slight decline in total volume. In Italy, Carlsberg Italia gained market share in a modestly increasing market and improved profit due to the acquisition of distribution companies. As of 1 January 2002, Carlsberg Italia is owned 100% by Carlsberg Breweries. In Portugal, Unicer Bebidas showed a stable trend in market share and earnings in a weak market.
70 Financial Review of the Carlsberg Group In Germany, market conditions remain difficult and Hannen registered unsatisfactory results, cf. comments under Special items. Eastern Europe: DKK million 2000 (*) 2001 ∆ % Net turnover 3,970 6,062 +52.7 Operating profit 708 1,183 +67.1 Operating margin (%) 17.8 19.5 +1.7 Beer sales (million hl) 23.0 29.4 +27.8 (*) Pro forma comparative figures for 2000 (12 months) Net turnover rose by 52.7% to DKK 6,062m, which is due to growth in BBH and Vena as well as the consolidation of Türk Tuborg, Turkey and Piast, Poland. Operating profit increased by 67.1% to 1,183m against DKK 708m last year. The increase is primarily attributable to organic growth in turnover and profit in Russia. In BBH, net turnover rose by 54% to DKK 3,659m. The total volume growth in beer of 30% stems from organic growth. BBH increased its market share in Russia to 30%, corresponding to a rise of about 3%-points compared to last year. The company thus continued its strong progress, both as regards volume and profit. In Russia, Vena saw significant growth and reversed last year’s negative results to very satisfactory results. In Poland, the implementation of Carlsberg Okocim’s new structure has been initiated. It is expected to be operational by Q2, 2002. The market trend was weaker than expected and results are unsatisfactory. The Piast brewery has been consolidated with effect from 1 August 2001. In Turkey, Carlsberg Breweries increased its shareholding in Türk Tuborg to 82.46%. The company has experienced difficult market conditions and operating profit is slightly negative. The brewery has been consolidated with effect from 1 July 2001. Asia: DKK million 2000 (*) 2001 ∆ % Net turnover 1,842 1,891 +2.7 Operating profit 355 417 +17.5 Operating margin (%) 19.3 22.1 +2.8 Beer sales (million hl) 10.5 11.3 +7.6 (*) Pro forma comparative figures for 2000 (12 months) Net turnover increased by 2.7% to DKK 1,891m. Most markets showed modest progress. Operating profit rose by 17.5% to DKK 417m. The increase is primarily due to the sale of the loss-making brewery in China last year. Other operating income, net Other operating income mainly relates to sale of property and land at Tuborg’s former brewery site. Carlsberg is co-operating with external partners on the construction and sale of non-residential property and rented accommodations. To this must be added the operating profit from the Group’s investments in property. Profit before tax from participating interests in associated companies During the financial year, results of other associated companies showed a modest decline compared to last year. One of the reasons for this decline is the deficit from Royal Scandinavia, which was not included under this item last year when the company was a subsidiary. To the opposite effect, CCNB (the former Coca-Cola ”Anchor Bottler” and previous owner of the Nordic Coca-Cola companies) realised positive results during the winding-up phase. Special items As in previous years, this item includes significant non-recurring amounts. Special items net amounted to DKK 17m against DKK 428m last year.
Page 1 and 2:
Report and Accounts 2001
Page 3 and 4:
A Brief Presentation ▲ ▲ A Brie
Page 5 and 6:
2 Letter to the Shareholders Letter
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4 Letter to the Shareholders lows t
Page 9 and 10:
6 Highlights and Key Figures, 5-yea
Page 13 and 14:
10 Report for 2001 Report for 2001
Page 15 and 16:
12 Report for 2001 CCNB and AD amou
Page 17 and 18:
14 Report for 2001 Asia: DKK millio
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16 Organisation and Group Companies
Page 21 and 22: 18 Corporate Governance ments, rais
Page 23 and 24: 20 Shareholder Information Sharehol
Page 25 and 26: 22 Shareholder Information Analysts
Page 29 and 30: 26 Carlsberg Breweries Carlsberg Br
Page 31 and 32: 28 Consolidation and Growth Consoli
Page 33 and 34: 30 Consolidation and Growth Carlsbe
Page 35 and 36: 32 Regional Reports - Western Europ
Page 41 and 42: 38 Regional Reports - Eastern Europ
Page 43 and 44: 40 Regional Reports - Eastern Europ
Page 45 and 46: 42 Regional Reports - Asia Asia COU
Page 47 and 48: 44 Regional Reports - Asia position
Page 51 and 52: 48 Corporate Centre Corporate Centr
Page 53 and 54: 50 Corporate Centre UEFA Cup final,
Page 55 and 56: 52 Corporate Centre volvement in th
Page 57 and 58: 54 Corporate Supply Chain Corporate
Page 59 and 60: 56 Corporate Supply Chain dustry in
Page 61 and 62: 58 Carlsberg Research Center Carlsb
Page 63 and 64: 60 Carlsberg Properties and Foundat
Page 68 and 69: Accounts for 2001 65 Accounts for 2
Page 70 and 71: Financial Review of the Carlsberg G
Page 78 and 79: Accounting Policies 75 Turnover Sal
Page 80 and 81: Profit and Loss Account 2001 77 Pro
Page 82 and 83: Balance Sheet 79 Balance Sheet as a
Page 84 and 85: Notes to the Accounts 81 Notes to t
Page 92 and 93: Noter 89 Notes to the Accounts (DKK
Page 94 and 95: Turnover, Operating Profit and Equi
Page 96 and 97: Group Companies 93 Group Companies
Page 98 and 99: Auditors’ Report 95 Auditors’ R
Page 100 and 101: ▲ Board of Directors and Executiv
Page 102: Carlsberg A/S CVR No. 61056416 1, V
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Annual Report 2001 - Carlsberg Group

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