Carlsberg's Profits Rise Despite European Decline
Published on Aug 15 2012 4:31 PM in Drinks
Despite poor weather conditions in Northern and Western Europe, Carlsberg has reported an increase of 47 per cent in net profits for the first six months of the year, hitting DKK 3,279 million. The Danish brewer's second quarter net profits hit DKK 3,355 million, compared to DKK 2,055 million for the comparable period last year.
The group's net revenue grew by 4 per cent to DKK 32,459 million in the first half, reflecting 1 per cent organic growth, while it decreased by 2 per cent in the second quarter. The Carlsberg brand saw a 13 per cent growth in premium markets, no doubt bolstered by its sponsorhip of EURO 2012.
Excluding Poland, beer volumes in the Northern and Western Europe market declined by 3.5 per cent in the first half of the year, but saw organic growth of 2 per cent in the first half. Overall, group beer volumes declined organically by 1 per cent during the six months, with organic growth of 1 per cent in the second quarter. The slowdown in sales in Europe saw operating profits dropped by 13.9 per cent in the first half, down to DKK 4,045 million from DKK 4,698 million in 2011.
The European slowdown was offset by growth in Asia, Russia and Ukraine, boosted by strong performances in France, Poland, China, and India. The group estimates that the Russian beer market was up by 2 per cent. Russia largest single market for the Carlsberg group and made up 30 per cent of beer volumes in 2011.
Commenting on the results, CEO Jørgen Buhl Rasmussen said, “Carlsberg achieved positive market share growth in all three regions which shows that the recent years’ significant efforts behind our international premium brands, local power brands, and within sales execution are paying off." (15 Aug)
© 2012 - ESM: European Supermarket Magazine