Annual Report 2001 - Carlsberg Group

Financial Review of the Carlsberg Group
71
Due to the favourable development in results of
the Vena brewery in Russia, DKK 200m was reversed
in 2001 in relation to a previous write-down.
In addition, a write-down of DKK 200m on the
fixed assets of the loss-making Hannen brewery
in Germany was made.
Financials, net
Financials showed a negative DKK 58m against a
negative DKK 253m in 2000. Adjusted for the
gains from i.a. the sale of minority shareholdings in
the Thai breweries (net DKK 518m), financials
showed net expenditure of DKK 576m in line with
expectations. In 2001, financials were affected by
interest expenses in connection with the financing
of the acquisitions in Turkey and Poland in 2001
and the acquisition in Switzerland in December
2000.
Corporation tax
Corporation tax for the period totalled DKK 743m,
corresponding to an effective tax rate of 22.1%
compared to 29.4% last year. The reduced tax
rate is mainly attributable to the reduction in tax
on the comparatively large capital gains and to the
low tax rate in Baltic Beverages Holding (BBH).
Minority interests
Developments in this item are essentially attributable
to the new Group structure with the establishment
of Carlsberg Breweries, of which Orkla
owns 40%.
The balance sheet
The balance sheet total at 31 December 2001
increased by DKK 6.1bn compared to last year.
This is mainly ascribable to the inclusion of Orkla’s
beverage activities as from 1 January 2001, the
changes in the Nordic cola business and the
acquisitions in Turkey and Poland.
Equity
Equity totalled DKK 12.5bn (Carlsberg A/S’ share
amounted to DKK 8.1bn) and constitutes 30% of
the Group’s balance sheet total.
The increase in the Group’s equity mainly dervies
from the profit for the year and the contribution
of Orkla’s beverage activities.
Deductions in equity are primarily attributable
to Group goodwill in connection with the takeover
of the companies in Turkey and Poland.
Provisions
Provisions amounted to DKK 3,702m against DKK
3,131m last year. The majority of this amount (a
total of DKK 3,156m) relates to provisions for
pensions, etc. (DKK 780m), repayment obligations
in connection with packaging material (DKK
1,239m) and deferred tax (DKK 1,137m). These
items saw a total increase of DKK 724m, which is
mainly attributable to the inclusion of Orkla’s
beverage activities, the changes in the Nordic cola
business and the acquisition of the companies in
Turkey and Poland.
Other provisions amounted to DKK 546m, and
provisions were applied according to plans during
the period. A total of DKK 172m before tax was
applied (against DKK 534m last year) of the provisions
made regarding Coca-Cola Nordic Beverages
a/s (CCNB) and the compensation received in
connection with the Allied Domecq (AD) agreement
in 1995/96. The remaining provisions relating
to CCNB and AD amount to DKK 78m after
tax and will be applied in 2002. Provisions of DKK
100m were made from the gains realised in connection
with the sale of the shares in Thailand and
will be applied in connection with costs in relation
to the new structure in Asia.