Business case Duvel
Duvel Moortgat Brewery: key information
- Sector: independent brewery group with a focus on specialty beers
- Company founded in 1871
- Headquarters: Belgium
- 7 production sites and active in over 60 countries
- 40 entities included in the consolidation
- IFRS consolidation
- Replacement of IBM Cognos Controller
- More information: duvel.com
The return on investment – in a few words
- Decentralized responsibility of the data-entry
- Fully independent realization of the consolidation: a user-friendly software, easy for the client to change the parameters
- Endless analysis reports that are standard available, such as the consolidated cash flow statement
- More time for analysis of the figures at HQ
Duvel Moortgat is currently experiencing strong growth and performs 4 consolidations per year. The complexity of the consolidation (40 entities and 4 different currencies) is due to the structure of the group:
- 7 breweries (4 in Belgium, 1 in Czech Republic and 2 in the USA)
- Represented in over 60 countries through commercial companies (France, the Netherlands, the USA and China)
- Distribution network for the export countries
The Financial Management of Duvel Moortgat was looking for a reliable software that could set up an efficient process to meet the requirements of investors and banks, thus enabling better management of the group. Furthermore, the group needed to meet the criteria that were sources of difficulty in Cognos Controller (IBM), the previous software package of the group:
- Multiple currencies
- Sub-consolidations in different currencies than the principal consolidation
- Coordinating the equity and justifying any discrepancies
- Generating the consolidated cash flow statement
In May 2014, the group decided to implement Consolidation & Reporting for their consolidation and financial reporting. A kick-off meeting was held in order to better get to know the specific needs of Duvel Moortgat in June and the first consolidation was successfully completed in October 2014. In December 2014, each user was provided with training in order to be able to use the software fully independently.
With Consolidation & Reporting, the group has a flexible solution at all levels, which offers a convenient way to keep up with all of the developments and specific characteristics of the group.
Decentralized responsibility of the data-entry
The intuitive user interface allows responsibility for the data entry to be decentralized. The controllers of the local entities have direct access to the system for data entry, which means that the consolidation of the 40 entities can be carried out by a small team. This results in more time for analysis of the figures at HQ.
Fully independent realization of the consolidation
The implementation of Consolidation & Reporting enables Duvel Moortgat Group to reliably generate consolidated annual accounts completely independently. Thanks to the many functionalities included in Consolidation & Reporting, it’s easy for the client to make any adjustments or change parameters in-house. This means that, for example, takeovers and changes in shareholdings no longer pose any problem for the group consolidation, thus saving considerable time.
Smooth management of the consolidation
Whereas in the past it was very time-consuming to reconcile the reserves, the client can now do this before the consolidation process even begins, allowing the consolidation to be carried out with ease. Furthermore, different analysis reports are standard available in the tool, for example the consolidated cash flow statement.
This all results in less time spent on the consolidation and an enhanced quality of the process. The group can also rely on the helpdesk and the expertise of a consultant to get a quick answer to all of her questions.
Gigi De Borgher, Manager Group Accounting & Controlling at Duvel Moortgat Group explains:
“We chose Consolidation & Reporting chiefly for its flexibility and user-friendliness. We also appreciate how well the start-up of the project was planned and managed and that all the parties met their deadlines. This allowed the implementation of Consolidation & Reporting to go extremely smoothly and we were soon up and running with the new system. The clear and effective training ensured that everyone was able to get started quickly. Finally, the Sigma Conso consultant oversaw the entire project flawlessly and thanks to him, we were able to complete the first consolidation worry-free.”