Arla Foods Annual Report 2020
Management Review
Our Strategy
Our Brands and Commercial Segments
Our Responsibility Our Governance
Our Performance Review Our Consolidated Financial Statements
Our Consolidated Environmental, Social and Governance Data
Capital employed
3.1 INTANGIBLE ASSETS
Table 3.1.a Intangible assets and goodwill
(EURM)
Goodwill
Licenses and
trademarks
IT and other
development
projects
Total
ון
Stable level of intangible assets and goodwill
Intangible assets and goodwill amounted to EUR 931
million, representing a decrease of EUR 51 million
compared to last year.
Goodwill
The carrying value of goodwill amounted to EUR 667
million, compared to EUR 700 million last year. This
decrease was due to exchange rate movements. Of the
total carrying value of goodwill, EUR 462 million related
to activities in the UK, compared to EUR 489 million last
year. Refer to Note 3.1.1 for more details.
Licenses and trademarks
The carrying value of licences and trademarks
amounted to EUR 81 million, compared to EUR 90
million last year.. The carrying value primarily relates
to recognition of trademarks in connection with
business combinations and includes brands such as
Yeo Valley®, AnchorⓇ and HansanoⓇ. The decrease in
value compared to last year was due to amortisation.
The strategic brands, Arla®, LurpakⓇ, CastelloⓇ and
Puck, are internally generated trademarks and
consequently no carrying values are recognised for
these. Arla has the license to manufacture, distribute,
and market StarbucksTM premium ready-to-drink coffee
beverage under a long-term strategic license
agreement. Additionally Arla holds a long term license
agreement to manufacture, distribute and market Kraft
branded cheese products in the MENA region. No
values are recognised due to these license agreements.
IT and other development projects
The carrying value of IT and other development
projects was EUR 183 million, compared to EUR 192
million last year. The group continued to invest in the
development of IT. In 2020, IT investments related to
Focus Trade Investment, a freight cost management
solution and a new milk settlement system. Other
capitalised development costs included innovation
activities and the development of new products.
2020
Cost at 1 January
Exchange rate adjustments
Additions
Reclassification
Disposals
Cost at 31 December
700
-33
173
472
1,345
-2
1
-34
53
53
-8
-13
-21
667
163
513
1,343
Amortisation and impairment at 1 January
Exchange rate adjustments
-83
-280
-363
Amortisation and impairment for the year
-8
218
-1
-62
-70
Reclassification
Amortisation on disposals
8
13
21
Amortisation and impairment at 31 December
Carrying amount at 31 December
-82
-330
-412
667
81
183
931
Intangible assets and goodwill,
2020
Intangible assets and goodwill,
2019
2019
Cost at 1 January
Exchange rate adjustments
Additions
Mergers and acquisitions
Reclassification
Disposals
C
C
982
MILLION EUR
931
MILLION EUR
Goodwill 72%
Licences and trademarks 8%
IT and other development projects 20%
Goodwill 71%
Licences and trademarks 9%
■IT and other development projects 20%
83 ARLA FOODS ANNUAL REPORT 2020
598
170
431
1.199
25
3
28
52
52
80
80
-1
1
0
-2
-12
-14
Cost at 31 December
700
173
472
1,345
Amortisation and impairment at 1 January
-1
-74
-237
-312
Exchange rate adjustments
-1
-1
Amortisation and impairment for the year
-1
-55
-64
Amortisation on disposals
2
-8
12
14
Amortisation and impairment at 31 December
-83
-280
-363
Carrying amount at 31 December
700
90
192
982View entire presentation