Grolsch posted on February 25 a slight rise in net profit. The Dutch brewer today posted a net profit in 2003 of €30.4m, compared to €30.1m in 2002.

Grolsch also announced that more of its beer was drunk world-wide in 2003 than ever before, amounting to 3.2 million hectolitres, as net turnover rose by 1.7% to €301.4m compared to €296.5m year-for-year. While volume growth in the UK and other foreign markets, and price increases in the Netherlands and various export markets all had a positive impact on the company, the decline of the Dutch beer market and lower exchange rates had a negative effect on net turnover.

In 2003, the brewer recorded an extraordinary gain amounting to €12.0 million (before tax), relating to some fixed assets at the Groenlo and Enschede-North breweries. These were written off in 1997, but have since proved to have a higher residual value. Net profit including this extraordinary gain amounted to € 38.3 million.

Going forward, Grolsch expects profit in 2004 to fall by between 20% and 30%, mainly as a result of rising depreciation relating to the commissioning of a new brewery.

In a statement, the company said; “Because the negative effects, mainly the increase in depreciation charges, will have a stronger impact on the result than the positive effects in 2004, Grolsch expects the result for 2004 (taking into account the usual tax rate of about 35%) to fall 20% to 30% in comparison with the result for 2003 excluding the extraordinary gain. Grolsch expects renewed profit growth after 2004.”

The company is proposing a dividend for 2003 of €0.77 per share, maintaining a payout ratio of 43%.

27 February, 2004