RUSSIA: Carlsberg's cautious take could be political - analyst
The brewer could be playing down its prospects for Russia, Nomura suggests
Carlsberg could be playing down its prospects in Russia for “political reasons”, according to an analyst.
In a note today (19 February), following the brewer's full-year results yesterday, Nomura flagged that the company's commentary on Russia “looks quite cautious” for the year. But the note added: “As well as a desire to keep market expectations low, after the 2011 profit warning, we believe that the company is also keen not to put too much good news on Russia in the shop window for political reasons.”
Russia has brought in a series of measures to crack down on alcohol abuse in the past year, including a ban on drinks advertising, outlawing sales from outdoor kiosks and steep tax rises.
But Nomura said the outcome for the brewer in Russia could be better than it predicts. “The outcome could be more positive, with volumes being helped by the narrowing of the relative price point of beer vs vodka, and margins boosted by rational pricing, as well as the company continuing to outperform after strong market share momentum in Q4,” the note said.
Nomura also suggested that the company's abandoning of its medium-term margin targets in favour of an aim to deliver longer-term adjusted EPS of 10% per annum shows the group has “confidence for the future”.
- Are we kidding ourselves over craft spirits?
- What's behind Brown-Forman's Irish whiskey plans?
- Is Brown-Forman doing a Jack Daniel's in Ireland?
- How good a sustainability fit are ABI and SAB?
- The new Johnnie Walker ad and today's consumers
- Diageo, Treasury Wine Estates quiet on wine sale
- Chandon to become "third pillar brand" for MH
- Brown-Forman silent on Southern Comfort report
- Stoli appoints international marketing director
- Moet Hennessy hails Formula One deal for Chandon
- The IWSR Duty Free/Travel Retail Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research