Duvel Moortgat Annual Report

Master of Global Management

Financial Accounting

Academic year 2011-2011

Joris De Weerdt

Mohit Sharma

Martin Siarik

Carole Thielens

Nur Halise Yamac

Professor: Dr. V. Weets

Table of content

1. Presentation company: products, organizational structure, location and segment (relative risks and rewards) 1

1.1. Products 1

1.2. Organizational structure 1

1.3. Location over the World 2

1.2. Segment: Relative risks and rewards 2

1.2.1. Sectorial classification 2

1.2.2. Risks 2

1.2.3. Rewards 3

2. Analysis of statement of financial position and income statement 5

2.1. Main features of statement of financial position 5

2.1.1. Vertical Analysis 5

2.1.2. Horizontal Analysis 6

2.2. Main features of statement of financial position 7

2.2.1. Vertical Analysis 7

2.2.2. Horizontal analysis 8

3. Significant accounting policies 10

3.1. Principles 10

3.2. Summary of significant accounting policies 10

3.2.1. Presentation currency 10

3.2.2. Principles of consolidation 10

3.2.3. Foreign currencies 11

3.2.4. Intangible assets 11

3.2.5. Property, plant and equipment 12

3.2.6. Investment property 12

3.2.7. Receivables 12

3.2.8. Cash and cash equivalents 13

3.2.9. Stocks 13

3.2.10. Trade and other payables 13

4. Group context 13

4.1. Goodwill 13

4.2. Non-controlling interests 14

4.3. Number of subsidiaries and consolidation scope 14

4.3.1. Acquisitions and disposals of subsidiaries 14

4.3.2. Current consolidation scope 15

5. Ratio-analysis 16

5.1. Management performance ratios 16

5.1.1. Profitability ratios 16

1.3.1. Asset utilization ratios 18

5.2. Financial strength ratios 19

5.2.1. Long term solvency risk ratios 19

5.2.2. Short term liquidity ratios 21

6. SWOT analysis 23

6.1. Strenghs 23

6.2. Weaknesses 24

6.3. Opportunities 24

6.4. Threats 25

1. Presentation company: products, organizational structure, location and segment (relative risks and rewards)

1.1. Products

Duvel Moortgat is a Belgian family-controlled and independent brewing group with a leading position in the segment of specialty beers and premium brands. The group is listed on the Euronext Brussels stock exchange and is part of the Bell Small index.

The company holds a portfolio of high qualitative beers, among which Duvel, Bel Pils, Vedett, Maredsous, Bernard, Ommegang, Chouffe, Liefmans and De Koninck are the group's main premium brands (see figure 1).

Figure 1: Product portfolio Duvel Moortgat; Source:

1.2. Organizational structure

Duvel Moortgat manages its activities through two business units. The first one, namely 'Production and sales of drinks', organizes all of the operational activities. These include the brewing, bottling, conditioning and selling of a wide range of drinks (not only beer - also wines, spirits, waters, soft drinks and fruit juices) and of all the goods necessary for their production and packaging. The 'Other activities' business unit is engaged in real estate operations and the provision of financial services to the group. Table 1 of the appendix shows a clear overview the different subsidiaries, joint ventures and holding companies by which the activities of these two business units are coordinated.

1.3. Location over the World

Duvel Moortgat has acquired a top position on an international scale. Its 5 production units are located in Belgium (the Headquarter in Puurs, Brasserie d'Achouffe, Brouwerij De Koninck), The United States (The American Ommegang Brewery) and in the Czech Republic (Czech Pilsner brewery Bernard).

Figure 2: Geographical dispersion of group sales; Source: Duvel Moortgat

The company's beers are exported to more than 50 countries around the world, although the most important export markets are the United states, the Netherlands, France, as well as the United Kingdom (see figure 2-report). Because there markets offer the best growth perspectives, Duvel Moortgat also appointed sales and distribution teams to them (Duvel Moortgat France Ltd, Duvel Moortgat USA Ltd and Duvel Moortgat UK Ltd).

1.2. Segment: Relative risks and rewards

1.2.1. Sectorial