8/9/2001 15:00 

Half-year Financial Statement as at 30 June 2001 of the Carlsberg Group

Results at level with expectations         -Download PDF

  • Operating profit amounts to DKK 1,319m against DKK 984m last year (+34%).
  • Volume is 15% up on last year (beer: 31.6m hl (+13%) and soft drinks: 6.4m hl (+19%)).

  • Western Europe experienced satisfactory Q2 results even though the region is still affected by the integration in Carlsberg Sweden, the changes in the cola business as well as a number of restructuring projects.

  • The growth region Eastern Europe also showed satisfactory developments and very positive results.

  • The establishment of the new set-up in Asia has been delayed and consequently the included results are based on Carlsberg's structure prior to the establishment (as in 2000).

  • Net financials show an income of DKK 243m after a profit (net) of DKK 518m before tax arising from the sale of financial investments in Thai breweries.

  • In the aggregate, Carlsberg A/S' share of the results for the entire financial year is still expected to be somewhat above that of last year (12 months) and unchanged in relation to the Q1 2001 financial statement.

  • As of July 2001, Carlsberg Breweries is a majority shareholder in Türk Tuborg and is preparing a compulsory public tender offer to the minority shareholders.

  • In Poland, Carlsberg Breweries' takeover of Bitpol and the Piast Group and a subsequent merger with Okocim into Carlsberg Okocim create a significant market player.

Jørn P. Jensen, CEO
Jesper C. Bærnholdt, CFO

Phone: +45 3327 2727

for the period 1 January - 30 June 2001

DKK million


6 months

in %




Net turnover


Operating profit


Special items


Profit before financials


Financials, net


Profit before tax


Group profit


Profit, Carlsberg A/S's share




Changesin %




Total assets


Interest-bearing debt, net


Movements in Group equity

Equity as at 31.12.00


Group profit


Additions from Orkla's beverage activities, incl. minority


Dissolution of CCNB incl. disposal minority


Currency translation adjustments, etc.


Write-off of Group goodwill


Equity as at 30.06.01


Minority interests as at 30.06.01


Carlsberg A/S' share of equity as at 30.06.01


Minority interests amounted to DKK 1,651m as at 31.12.00. The increase is primarily related to Orkla's 40% ownership of Carlsberg Breweries A/S.

The accounting policies applied remain unchanged from the annual accounts for 1999/00 although minor reclassifications may occur due to, inter alia, the inclusion of Orkla's beverage activities as at 1 January 2001. For comparison with last year, please note the changes in the Group's structure, including the addition of Orkla's beverage activities and the changes in the cola business in the Nordic countries.

The establishment of the new set-up in Asia (Carlsberg Asia Ltd.) has been delayed. Carlsberg's Asian activities are not yet included in Carlsberg Asia Ltd., due to legal matters, pending authority approvals, etc., and hence, the results included in the accounts are based on Carlsberg's legal structure in Asia prior to the establishment (as in 2000). As soon as Carlsberg's companies/activities as well as the joint venture partner's Thai company are included in Carlsberg Asia Ltd, the accounts will reflect the new legal structure. Hence, the Q2 accounts also include accounting adjustments to the Q1 accounts as regards the Asian activities.

Comments on developments in the past period

The past six months witnessed a 13% and 19% increase in the Carlsberg Group's beer and soft drink volumes, respectively, compared to last year. Net turnover amounts to DKK 16,326m against DKK 14,373m in the same period last year (+14%). Most of the increase is due to the inclusion of Orkla's beverage activities as well as the Swiss brewery Feldschlösschen Getränke Holding AG. Furthermore, Eastern Europe experienced favourable organic growth. The net effect of the development in exchange rates was negligible.

Operating profitis DKK 1,319m against DKK 984m last year (+34%). This is, among other things, due to strong growth in Eastern Europe, whereas Western Europe, as expected, saw slightly weaker results during the first six months compared to last year. In Asia, operating profit increased by 66%.

Financialsamounts to DKK +243m. Adjusted for the (net) gains of DKK 518m from the sale of the minority shareholdings in Thai breweries, financials show an expected net expenditure of DKK 275m. This is a result of the past years' significant acquisitions of companies and investments in new production plant.

Profit before taxconsequently totals DKK 1,562m against DKK 1,316m last year, which is in line with expectations.

Group profitamounts to DKK 1,119m against DKK 946m last year, whileCarlsberg A/S' share of the profitamounts to DKK 607m against DKK 972m in the same period last year.

During the period, the Group'sprovisionswere reduced as planned. The first six months saw disposals of DKK 86m before tax (compared to DKK 230m last year) of the provisions in connection with Coca-Cola Nordic Beverages A/S (CCNB) and the compensation received in connection with the Allied Domecq agreement in 1995/96. DKK 100m of the gains from the sale of the Thai shares are still reserved to cover expenses in connection with the new structure in Asia.

Net interest-bearing debtof DKK 10.5bn developed in line with expectations and is at level with 31.12.00.

Please find below a description of the three regions of Carlsberg Breweries A/S with reference to pro forma comparable figures for 2000, including Orkla's bever-age activities.

Western Europe:

DKK million

First 6 months
2000 *

First 6 months

Changesin %


Net turnover


Operating profit

- 7

Net profit ratio (%)


Beer sales (million hl)

+ 7

* Pro forma comparable figures for 2000

Net turnoverrose by approx. DKK 1.7bn (+16%) to DKK 12.3bn, which was primarily the result of the acquisition of Feldschlösschen.

Operating profitin Q2 was up on last year and higher than expected even though profit in total for the first six months decreased by DKK 42m to DKK 847m. Please see comments below regarding the individual markets.

InDenmark, beer consumption stabilised, however, due to the major differences in excise duties between Denmark and Germany, up to 20% of Danish beer consumption is still purchased south of the border. Furthermore, the increase of the soft drink excise duty as at 1 January 2001 had a negative impact on the sales of soft drinks. The results of the Danish activities were in line with last year, which is better than expected.

InGreat Britain, Carlsberg-Tetley achieved better results than expected with un-changed volume in a market which fell by 3% in the first six months. Thus, the de-velopment was more positive in the second quarter compared to the first quarter. Carlsberg-Tetley continues its increased focus on the main brands Carlsberg and Tetley's.

InSwitzerland, Feldschlösschen contributes favourably to the development in operating profit in accordance with expectations. The initiatives made are expected to gain significant effect as of 2002.

InSweden, the integration of Pripps and Falcon in Carlsberg Sweden continues. The Swedish beer market continued to decline in the second quarter, which, together with the costs of the Pepsi introduction as at 1 January 2001, led to results below last year's level and below expectations. Negotiations with the trade unions in Carlsberg Sweden AB regarding the phaseout of the production and ware-house activities at the brewery in Gothenburg have ended and the brewery in Gothenburg is expected to close in July 2002. As previously mentioned, synergies from the integration in Sweden are not expected to have any major effect until 2002.

InFinland, operating profit was above expectations. Operating profit inNorwayshowed progress compared to last year due to improved product mix and cost savings.

InItaly, results were above expectations due to a rise in sales, while the results inPortugalwere similar to those of last year and in line with expectations.

InGermany, a restructuring plan including a 12% reduction in the workforce has now been initiated. Operating profits turned out as expected and thus remain unsatisfactory.

Eastern Europe

DKK million

First 6 months 2000 *

First 6 months

Changesin %


Net turnover


Operating profit


Net profit ratio (%)


Ber sales (million hl)


* Pro forma comparable figures for 2000

Net turnoverrose by 45% to almost DKK 2.6bn, which was primarily due to growth in Baltic Beverages Holding (BBH).

Operating profitincreased by 37% to DKK 459m against DKK 335m last year. The reduction in the net profit ratio was mainly due to the 1Q 2001 provision of DKK 28m to hedge against currency risks on the activities in BBH. If this adjustment were excluded, the net profit ratio would have remained unchanged (19%).

InBBH(50%), net turnover rose by 51% to DKK 1,587m. Organic growth and total progress in volume reached 21%. The development in volume shows that BBH continues to grow more rapidly than the market and that BBH's market share in Russia is 28.2%, which is 1.6% point up on the same period last year. In the first six months, the market growth was 18% in Russia and 10% in the Ukraine. In the Baltic States, the market showed a slight decline.

In addition, Carlsberg Breweries' brewery Vena inRussiaexperienced a significant increase in volume (+155%) and in results, and this also applied to the Svyturys brewery inLithuania.

InPoland, Okocim's market share amounts to approximately 7% based on an 18% volume rise. Please also see announcement released today on the establishment of Carlsberg Okocim.

InTurkey, Carlsberg Breweries took over the controlling interest in Türk Tuborg in July and is preparing a compulsory public tender offer to the minority shareholders.


DKK million

First 6 months
2000 *

Frist 6 months

Changesin %


Net turnover


Operating profit


Net profit ratio (%)


Beer sales (million hl)


* Pro forma comparable figures for 2000

Net turnoverrose by 18% to DKK 958m. All markets revealed progress except for China, where the sale of the controlling interest in the Shanghai brewery has led to a significant reduction in turnover.

Operating profitincreased from DKK 102m last year to DKK 169m. All markets show a reasonable development in profit, and the Chinese activities now show favourable results.

Other activities in the Carlsberg Group

The first half-year results of the associated company Royal Scandinavia (ownership 28%) are usually negative. Royal Scandinavia is included in the operating profit with DKK -52m, which is a higher deficit than last year. A number of restruc-turing projects within the company have been initiated.

Operating profit is furthermore affected by property gains of approximately DKK 30m.

Expectations for the financial year 2001

The annual report for 1999/00 expressed expectations that Carlsberg A/S' share of profit before special items this year would be in line with the comparable results for 2000 (12 months) corresponding to DKK 1.2bn.

However, due to the capital gains realized on the sale of the minority shareholdings in the Thai breweries, somewhat better results are expected for the current financial year compared to 2000 (12 months). The expectations thus remain unchanged compared to the Q1 2001 financial statement.

Statements on future prospects in this half-year financial statement reflect the management's expectations to future events and financial results as well as to the fluctuations in the most significant markets and to developments in the international money, currency and interest markets. Naturally, statements on future prospects will always involve uncertainties and, consequently, actual results may differ materially from those projected. Therefore, it is essential to bear in mind that a number of comprehensive integration, rationalisation and restructuring projects were launched in Western Europe in particular this year and therefore, expectations for results are characterised by uncertainty in these markets also for this reason. The synergies included in the expectations for the results this year are limited, and, all things considered, the accrual of total income and expense is deemed uncertain due to the comprehensive nature of the projects. In Asia, the establishment of the new company structure has been delayed, and also in this market, significant shifts of income and expense between 2001 and 2002 may take place.

Additional information

Carlsberg has published an environmental report for 1998-2000. The report is available on Carlsberg's home page www.carlsberg.com/info and can furthermore be obtained by contacting Carlsberg A/S by phone +45 33 27 27 27.

This financial statement is available in Danish and English. In case of doubt, the Danish version shall apply.

PHONE: +45 3327 2727