Report and Accounts 1999 / 2000 - Carlsberg Group

2
Letter to the Shareholders
Letter to the Shareholders
The financial year 1999/2000 proved to be an
exceptional year for Carlsberg. Our results
showed marked progress and it was one of the
busiest years in Carlsberg’s history. Among the
events are: the changes in the statutes of the
Carlsberg Foundation; the formation of the
subsidiary Carlsberg Breweries; the inclusion of
the beverage activities of the Norwegian company
Orkla ASA; the acquisition of the Swiss brewery
Feldschlösschen; the sale of the shareholdings in
Tivoli and Royal Scandinavia; and the formation of
the biotech company Combio. At the threshold of
the year 2001, Carlsberg is prepared to meet the
challenges in a competitive, global market.
The financial year was extended until 31
December 2000, and thus covers 15 months
(5 quarters). As a consequence of this extension
and the good results, the Board of Directors
proposes that a dividend of DKK 5.40 be paid per
share as against DKK 4.00 per share last year.
In future, the financial year will coincide with the
calendar year.
Growth in earnings
Growth in earnings was substantial. Operating
profit totalled DKK 2,934 million, corresponding to
a comparable growth of 25%. Profit before tax
totalled DKK 3,155 million (+39%).
In general, the upward trend in earnings is the
result of active adjustments in capacity and costs
and increased attention on the competitive profile
of the Carlsberg brand.
Carlsberg’s share of profit for the year after tax
totalled DKK 2,133 million (+41%) and earnings
per share amounted to DKK 26.7 against DKK
18.2 last year.
Net turnover increased by 6% when applying
comparable figures for the previous year. Particular
progress was registered in the Nordic Coca-Cola
companies and in Italy. Finland and Sweden also
experienced a positive development, whereas
turnover in the United Kingdom showed a declining
trend as expected.
In recent years, substantial investments have
been made in acquisitions and new production
plant. As a consequence, the net interest-bearing
debt has increased and now totals approx. DKK
10 billion or about 29% of the balance sheet total.
International structural development
It has been Carlsberg’s goal to increase its
presence in growth markets such as Eastern
Europe and Asia while still improving results and
seeking influence in more traditional markets in
Western Europe.
The joining of Carlsberg’s and Orkla’s brewing
and soft drink activities in the subsidiary Carlsberg
Breweries A/S was the most important, progres-