Report and Accounts 1999 / 2000 - Carlsberg Group

10
Report for 1999/2000
Provisions
Provisions amounted to DKK 3,131 million,
against DKK 3,342 million last year. The majority of
this amount, DKK 2,432 million, relates to provisions
for pensions, etc., DKK 366 million, repayment
obligations in connection with packaging
material, DKK 1,142 million, and deferred tax,
DKK 924 million. These items saw a total increase
of DKK 679 million, which is mainly attributable to
the changes in the shareholdings in the companies
in Malaysia and Poland and the acquisition of
Feldschlösschen Getränke Holding AG in Switzerland.
Other provisions amounted to DKK 699 million
compared to DKK 1,589 million last year. The decline
is mainly ascribable to the application of provisions
in connection with Coca-Cola Nordic Beverages
and Carlsberg-Tetley and adjustments in
other provisions.
Investments
The year saw total investments of DKK 7.2 billion,
which is DKK 4.6 billion up on last year. The
substantial increase in investments derives from
investments in new production plant in Coca-Cola
Nordic Beverages, Carlsberg-Tetley in the United
Kingdom, Okocim in Poland and Sinebrychoff in
Finland as well as the acquisition of the remaining
40% shareholding in Sinebrychoff, the increase in
the shareholding in Carlsberg Brewery Malaysia
Berhad to 50% and the acquisition of Feldschlösschen
Getränke Holding AG in Switzerland.
Securities, cash and cash equivalents
and net interest-bearing debt
At 31 December 2000, securities, cash and cash
equivalents, consisting of cash at bank and in
hand and listed securities, amounted to DKK 2.9
billion, based on official stock exchange prices.
Furthermore, confirmed but unutilised credit
facilities amounted to about DKK 3.4 billion.
The net interest-bearing debt totalled DKK 10.3
billion, which is an increase of DKK 6.0 billion. This
is a natural consequence of the substantial investments
described above.
Free cash flow amounted to DKK –3.8 billion
against DKK –0.7 billion last year. The contribution
from operations saw a marked improvement compared
to last year and the negative figure registered
for free cash flow is thus attributable to the
substantial investments, totalling DKK 7.2 billion.
Volume
The Carlsberg Group’s global beer sales in the
past year (calendar year 2000) grew by 2.8 million
hectolitres to 39.8 million hectolitres (+7.6%). The
global consumption of beer continues to increase,
although with large regional differences. Soft drink
sales (calendar year 2000) amounted to 14.8
million hectolitres against 13.8 million hectolitres
last year.
Developments in key markets
The positive development in operating profit must
be seen in the light of important circumstances in
the beer and soft drink sector:
Denmark: Beer consumption almost stabilised,
but an increasing part of Danish consumption is
purchased south of the Danish-German border.
The cost-saving measures implemented in the
Danish beer operations have resulted in a slight
PROFIT BEFORE TAX (DKK MILLION) 12 months
TOTAL ASSETS (DKK MILLION)
99/00
98/99
97/98
96/97
95/96
0 500 1,000 1,500 2,000 2,500
99/00
98/99
97/98
96/97
95/96
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000