Report and Accounts 1999 / 2000 - Carlsberg Group

Financial Review of the Carlsberg Group
61
projects have required substantial resources and
investments. Investments in IT solutions to
support the company mission will continue in the
years ahead.
Other operating income, net
Other operating income relates to Carlsberg-
Tetley’s distribution of other beverages, which saw
an increase in the past year, as well as the sale of
land and buildings at Tuborg’s former brewery site.
In this connection, 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 of participating interests in
associated companies
During the financial year, results of other associated
companies showed a decline compared to last
year. One of the reasons for this decline is the fact
that Carlsberg has increased its shareholding in
the Polish brewery, Okocim, which is now treated
as a subsidiary and consolidated 100%. In
addition, the operations of Tivoli are only included
up until 31 March 2000 because of the sale.
Special items, net
As in previous years, this item includes significant
non-recurring amounts which are not attributable
to the normal running of the company. Special
items amounted to DKK 428 million against DKK
79 million last year.
This item primarily comprises a net profit of
DKK 354 million from the sale of the shares in
Grupo Cruzcampo and profit from the sale of the
shares in Tivoli, amounting to DKK 182 million.
Furthermore, the company Ejendomsaktieselskabet
matr. nr. 43 ei Avedøre by was sold at a profit
of DKK 41 million. The item also covers adjustments
in provisions totalling DKK 312 million. This
includes the write-back of DKK 60 million in connection
with liabilities for deposits on returnable
packaging.
The write-down of the brewery in Shanghai is
registered as expenditure under this item. The
brewery was written down by the sales price
agreed with Tsingtao in August 2000. In addition,
provisions have been made for severance payments,
etc. in connection with the sale. A total of
DKK 241 million has been registered as expenditure
under this item.
Provisions of DKK 50 million have been made
in connection with the decision to close down the
distribution company in Sweden which is owned
by Falcon and Coca-Cola, Sweden. The closedown
is a result of the establishment of Carlsberg
Breweries A/S as the Swedish competition authorities
required that the co-operation with either
Pepsi or Coca-Cola in Sweden and Norway be
discontinued.
Of the remaining provisions, totalling DKK 170
million, the major part relates to the continued restructuring
efforts in Denmark and the vacating of
premises in Hong Kong. Please see note 5.
Financials, net
Financials showed expenditure of DKK 207 million
which is an increase on last year (DKK -119
million) because of the acquisition of companies
and the considerable investments made in
production plant in recent years. However,
expenditure is less substantial than expected,
primarily due to the capital gain realised during the
year from the sale of participating interests in
Dansk Kapitalanlæg, Berlingske Tidende, and
other activities.
Corporation tax
Corporation tax for the period totalled DKK 928
million, corresponding to an effective tax rate of
29.4% against 29.2% last year. When disregarding
tax-exempt gains, non-deductible costs, etc., the
effective tax rate amounted to 32.7%.
Minority interests
The minority interests’ share of the profit increased
compared to last year. This is primarily due to the
following circumstances in the companies with
significant minority shareholdings: Following an
initial running-in period, earnings in the CCNB
group companies showed improvement and
earnings in Svyturys increased.
The balance sheet
The balance sheet total at 31 December increased