Report and Accounts 1999 / 2000 - Carlsberg Group

58 Financial Review of the Carlsberg Group
Financial Review of the Carlsberg Group
Basis of comparison
At the Extraordinary General Meeting on 30
August 2000, it was decided to change the
financial year to follow the calendar year. This was
done by extending the financial period 1999/00 by
three months until 31 December 2000.
Consequently, the accounts and the financial
review cover the accounting period from 1 October
1999 until 31 December 2000 (15 months).
Carlsberg has increased its shareholdings in
the companies in Malaysia and Poland, achieving
the controlling interest, and these companies are
now fully consolidated. Previously, the companies
were associated and included on a pro rata basis
and one-line consolidated, respectively. A few
Group companies which, for practical reasons,
were previously included with a certain time lag
are now included up until 31 December 2000. The
changes in the basis of the accounts entail that
operating profit is DKK 276 million higher than
would otherwise have been the case.
To create a basis for comparison with previous
years, figures covering 12 months are stated in
brackets throughout the review when deemed expedient,
corresponding to the calendar year 2000
adjusted for the effects of the changes made in
the basis of the accounts.
1999/2000 in outline
• Sales of beer and soft drinks amounted to 69.9
million hectolitres against 50.8 million hectolitres
in 1998/99.
• Net turnover totalled DKK 34.9 billion (DKK
25.7 billion) against DKK 24.2 billion in 1998/
99, corresponding to a comparable increase of
DKK 1.5 billion or 6%.
• Operating profit amounted to DKK 2,934 million
(DKK 2,087 million) against DKK 1,673 million
in 1998/99, corresponding to an increase
of DKK 414 million or 25% when using comparable
figures.
• Special non-recurring items amounted to net
DKK 428 million against DKK 79 million in
1998/99.
• Net financials showed expenditure of DKK 207
million (DKK 253 million) against expenditure of
DKK 119 million in 1998/99
• Profit before tax totalled DKK 3,155 million
(DKK 2,262 million) compared to DKK 1,633
million in 1998/99.
• Group profit amounted to DKK 2,227 million
(DKK 1,623 million) against DKK 1,156 million
in 1998/99.
• Carlsberg A/S’ share of profit for the year
amounted to DKK 2,133 million (DKK 1,646
million) against DKK 1,164 million in 1998/99.
• Group assets amounted to DKK 35.0 billion
against DKK 29.9 billion as at 30 September
1999.
• Equity amounted to DKK 10.6 billion after appropriations
to reserves from the profit of the
year, deduction of dividend and write-off of
Group goodwill, etc. compared to DKK 11.9
billion as at 30 September 1999.
• Cash flow from operations for the period
amounted to DKK 3.2 billion.
Accounting policies
The annual accounts have been prepared in
accordance with the Danish Company Accounts
Act and the reporting requirements of the Copenhagen
Stock Exchange, which include current
Danish accounting standards. The accounting
policies are unchanged from last year. Please see
the section on Accounting Policies.
In accordance with Carlsberg’s long-standing
accounting principles, Group goodwill is immediately
written-off against equity.
During the past 10 years, the Carlsberg Group
has made substantial company acquisitions and
has thus written off DKK 7.5 billion against equity
on acquisition, of which DKK 3,644 million occurred
during the 15-month period from 1 October
1999. Had Group goodwill been capitalised
and amortised over a period of 20 years, it is estimated
that the Group profit would have been DKK
470 million smaller and, at 31 December 2000,
equity would have been DKK 6.2 billion larger.
Indirect production costs are not included in
the value of the Group’s stocks. Had such indirect
production costs been included, the value of the
stocks would have been DKK 137 million higher at
year-end. The impact on operating profit would
have been an income of DKK 20 million.