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Denmark: The Board of Directors of Carlsberg A/S approved on February 19 that the annual report of the Carlsberg Group and the Parent Company for 2003 be presented to the Annual General Meeting for approval. 2003 results are better than the expectations expressed in the Q3 Financial Statement, Carlsberg A/S revealed. Net revenue rose by 4% at unchanged currency rates. At actual exchange rates net revenue amounted to DKK 34.6bn (-3%). Operating profit (EBITA) increased by 4% at unchanged exchange rates. At actual exchange rates operating profit amounted to DKK 3.6bn (-6%). Carlsberg’s share of the results prior to the net effect of special items was DKK 1,109m (+8%). Inclusive of special items, the share amounted to DKK 956m (-5%). Earnings per share (before goodwill, own shares and special items) increased to DKK 21.90 from DKK 20.50 (+7%). Cash flow from operating activities and free cash flow totalled DKK 4.5bn and 2.6bn, respectively, and interest-bearing debt was reduced by DKK 2.0bn. It is proposed that a dividend of DKK 5.00 per share be paid (unchanged compared to 2002).

Carlsberg A/S has acquired the 40% minority shareholding in Carlsberg Breweries from Orkla ASA, cf. separate announcement to the Copenhagen Stock Exchange published today.

The Group’s main activity is the brewing and sale of beer and other beverages, and this makes up more than 90% of the consolidated revenue. In accordance with the Group’s management structure, the beverage activities are segmented according to the geographical regions where production takes place.

The Carlsberg Group’s beer (81.4m hl) and soft drink (21.2m hl) sales amounted to 102.6m hl (+3%) this year calculated in accordance with industrial standards (100% of the volume for subsidiaries, proportionally consolidated and associated companies as well as licence production). A calculation of volume based on subsidiaries and licence production with the addition of ownership shares in proportionally consolidated and associated companies results in a beer volume of 54.3m hl (+4%). This calculation method has been applied in the geographic segments below. The period saw a gain of more than 7% for the Carlsberg brand. Global beer consumption is still increasing, however, showing major regional differences.

Net revenue (revenue less excise duties) amounted to DKK 34.6bn against DKK 35.5bn in the same period last year (-3%). Converted at unchanged exchange rates, the increase was 4%. Converted at unchanged exchange rates, the increase in net revenue is mainly attributable to organic growth in eastern Europe as well as the new structure in Asia, while divested business units in Switzerland (soft drink and wine) and the divestment of the Hannen brewery facilities in Germany led to a decline in net revenue.

Operating profit amounted to DKK 3,564m against DKK 3,779m last year (-6%). At unchanged exchange rates, operating profit was up 4%, which was mainly due to general progress in results in all regions in Carlsberg Breweries at unchanged exchange rates. In 2003, Carlsberg Breweries increased its marketing expenses particularly for marketing of the Carlsberg brand, and this resulted in a very favourable development in volume. The Carlsberg brand is now the world’s fastest growing premium beer brand.

As to Carlsberg A/S’ property activities, results were as expected and operating profit was favourably affected by the gain from the divestment of property at approx. DKK 150m (2002 approx. DKK 120m). Depreciation on property, plant and equipment, etc. is included in operating profit with a negative DKK 2,673m against a negative DKK 2,630 million in 2002.


20 February, 2004