- Carlsberg sells property activities at the former Tuborg premises with an accounting gain of approx. DKK 250m. Net debt is reduced by approx. DKK 1bn.
- It has been decided to restructure the operation in the UK, which will entail costs of approx. DKK 125m.The costs will be included under special items.
- Expectations for 2005 operating profit are unchanged following the two decisions, whereas expectations for Carlsberg's share of net profit increase to approx. DKK 1.1bn from approx. DKK 1bn.
Sale of rental activities
Carlsberg has sold its 70% stake in seven rental properties at the former Tuborg premises in Hellerup north of Copenhagen (Tuborg Nord B I/S). The sale is part of Carlsberg's strategy to focus on beverage activities and the plan to reduce interest-bearing debt. As a result of the sale, debt has been reduced by approx. DKK 1bn.
The sale entails an accounting gain of about DKK 250m, which will be included under special items in 2005 as it constitutes sale of an activity. After tax of DKK 60m the gain amounts to approx. DKK 190m. Prior to the sale, the divested properties were included in operating profit (EBIT) with rental income (net) of about DKK 40m a year.
The sale relates to the first properties Carlsberg developed and constructed during the first half of the 1990s at the premises which were previously used for brewing activities. After the sale of the properties, Carlsberg A/S' rental property activities will practically be concluded.
Restructuring in the UK
The Board of Carlsberg UK has confirmed management's decision to reduce costs within production, logistics and administration. The initiatives will be implemented to counter the intensified and increasing competition in the UK beer market.
The objective is to simplify both business processes and the organisation. This will, among other things, be achieved through staff reductions within various functions. DKK 125m will be included under special items this year for that purpose. After tax of DKK about 35m the effect on results will be approx. DKK -90m.
Effect on expectations for 2005
The two decisions will have no effect on expectations for revenue and operating profit (EBIT) in 2005.
Special items, which were previously estimated at approx. DKK -550m, are now expected to be approx. DKK -425m.
Compared to the expectations expressed in the announcement made on 8 November 2005 in connection with the Q3 financial statement, expectations for profit for the year are increased by about DKK 100m from approx. DKK 1bn to approx. DKK 1.1bn.
Contact
Investors:
Mikael Bo Larsen, +45 33 27 1223
Media:
Jens Peter Skaarup, +45 3327 1417