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
3.2 PROPERTY, PLANT AND EQUIPMENT
Expanding production capacities
Arla's main tangible assets are located in Denmark, the
UK, Germany and Sweden. The carrying value increased
to EUR 2,915 million compared to EUR 2,710 million
last year. The CAPEX investment level was once again
record-high with a total increase of 14,6 per cent to
EUR 580 million compared to EUR 506 million last year.
Key investments in 2020 included continued expansion
of our powder production capacity in Germany,
expansion of the mozzarella production capacity in
Denmark and further investments in our newly acquired
production facilities in Bahrain.
Property, plant and equipment
by country, 2020
2,915
MILLION EUR
Property, plant and equipment
by country, 2019
2,710
MILLION EUR
Denmark 46%
Sweden 11%
UK 19%
Germany 14%
Other 10%
Denmark 44%
Sweden 11%
UK 21%
â– Germany 13%
Other 11%
86 ARLA FOODS ANNUAL REPORT 2020
Table 3.2.a Property, plant and equipment
(EURM)
Fixture
and
Land
and
fitting,
tools and
building machinery equipment
Plant
and
Asset in
course
of con-
struction
Total
2020
Cost at 1 January
1,666
3,152
685
407
5,910
Exchange rate adjustments
-17
-13
-14
-2
-46
Additions
81
102
60
337
580
Transferred from assets in course of construction
Disposals
66
195
28
-289
-26
-23
-35
-84
Reclassification
58
58
Cost at 31 December
1,770
3,471
724
453
6,418
Depreciation and impairments at 1 January
-705
-2.021
-474
-3,200
Exchange rate adjustments
1
5
4
10
Depreciation and impairments for the year
-73
-234
-74
-381
Depreciation on disposals
13
31
24
68
Depreciations and impairment at 31 December
-764
-2.219
-520
-3.503
Carrying amount at 31 December
1.006
1.252
204
453
Right of use assets included in the carrying amount
136
13
80
2.915
229
2019
Cost at 1 January
1,461
2,907
552
289
5,209
Change in accounting policies
95
27
77
199
Adjusted cost at 1 January
1,556
2,934
629
289
5,408
Exchange rate adjustments
18
15
10
2
45
Additions
47
78
45
336
506
Mergers and acquisitions
23
23
2
48
Transferred from assets in course of construction
36
162
22
-220
Disposals
-14
-60
-23
-97
Cost at 31 December
1,666
3,152
685
407
5,910
Depreciation and impairments at 1 January
-645
-1,841
-415
-2,901
Exchange rate adjustments
-4
-7
-7
-18
Depreciation and impairments for the year
-70
-223
-74
-367
Depreciation on disposals
8
56
22
86
Reclassification
6
-6
Depreciations and impairment at 31 December
-705
-2,021
-474
-
-3,200
Carrying amount at 31 December
961
1,131
211
407
2,710
Right of use assets included in the carrying amount
109
21
78
208View entire presentation