Duvel Moortgat Case Study
Duvel Moortgat Group: key information
|Business sector:||Brewery focused on specialty beers|
|Company status:||Public company listed in Euronext (Brussels)|
|2019 sales revenues:||€ 501 M|
|Number of employees:||72,000|
|Presence:||7 production sites with activities in over 60 countries|
Summary of benefits perceived by the customer
- Decentralized data-entry
- Consolidation process conducted autonomously
- Availability of numerous standard analysis reports
- Ability to spend more time on analyses
Experiencing a strong growth phase, Duvel Moortgat 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
- Distribution network for the export countries
The Financial Management of Duvel Moortgat was looking for a reliable software that could make their consolidation process efficient and that met the requirements of investors and banks, consequently enabling better management of the group.
Furthermore, it was necessary for the group to overcome the limitations experienced with the previous software package (IBM Congos Controller):
- Multiple currencies
- Sub-consolidations in different currencies than the principal consolidation
- Coordinating the equity and justifying discrepancies
- Generating the consolidated cash flow statement
The selected solution
The group decided to implement Sigma Conso Conso for their consolidation and financial reporting and within four months, the first consolidation was successfully completed. Eight weeks later, all users were trained to use the software independently.
The final state
With Sigma Conso Consolidation & Reporting, the group has a flexible solution at all levels, which offers a convenient way to keep up with all of the developments of the group.
- Decentralized responsibility of the data-entry
Sigma Conso Consolidation & Reporting enabled Duvel Moortgat to empower the local entities with the accountability of data entry. This resulted in a lean process, minimizing corrections to the data entered, avoiding overprocessing, and reducing the time spent waiting for the data to be processed. With the workload shifted from the HQ to the local entities, the HQ team was able to spend their time on analysis, rather than data management.
- Independent consolidation process
The implementation of Sigma Conso enables Duvel Moortgat Group to reliably generate consolidated annual accounts without the need of external support. The functionalities included in Consolidation & Reporting enable the client to make adjustments or parameter changes autonomously. This means that situations such as takeovers and changes in shareholdings can be addressed when needed, without posing problems for the group consolidation and saving considerable time.
- Smooth management of the consolidation
Whereas in the past it was very time-consuming to reconcile the reserves, the client may now do this prior to the initiation of the consolidation process, allowing the consolidation to be carried out with ease.
Furthermore, the users have access to multiple analysis reports that are integrated in the tool as a standard, such as the Consolidated Cash Flow Statement.
This results in an efficient consolidation process with an enhanced quality. The group can also rely on Sigma Conso’s helpdesk where experts are available to address any accounting issues that may arise.
Gigi De Borgher, Manager Group Accounting & Controlling at Duvel Moortgat Group explains:
“We chose Sigma Conso 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 problem-free.”