Focus - Carlsberg's FY Performance by Region
Carlsberg reported a strong performance in Asia
Earlier today (18 February) Carlsberg reported its full-year results, revealing single-digit rises in net profits and sales. Here just-drinks takes a closer look at the company's performance in the 12-month period by region.
The group branded the region “challenging” in 2012 as “difficult consumer dymanics” and poor summer weather dragged down its performance
Operating profits in the region fell by 5% to DKK5.1bn (US$912.2m), but sales edged up by 2% to DKK37.7bn. Beer volumes were flat at 50.3m hectolitres
The group attributed the drop in profits to “lower gross profit margin due to higher input costs, a negative country mix and poor weather during the summer”
Eastern Europe (Russia, Ukraine)
Operating profits from the group's Eastern European beer markets came in flat at DKK4.3bn, while sales edged up by 3% to DKK20.2bn. Beer volumes fell by 6% to 44.7m hectolitres
Volumes were hit by Russian destocking in Q1 and less stocking in Q4 than in 2011. In Uzbekistan, production was suspended all year as a result of a lack of raw materials following “increasing currency conversion difficulties”, the company said
In Q4, the Russian market fell by around 2% to 3% due to the introduction of a ban on sales from non-stationary outlets, Carlsberg said
Operating profits were up by 31% at DKK1.7bn, as sales jumped by 33% to DKK9.1bn. Beer volumes rose by 19% to 25.4m hectolitres for the region
Volume growth was “particularly strong” in India, Cambodia, Vietnam, Laos, Nepal and Malaysia, the company said
The positive performance was helped by increased ownership in Vietnam's Hue Brewery and Lao Brewery in Laos, acheived in 2011; in South Asian Breweries (India) in both 2011 and 2012; and the Chongqing Jianiang Brewery Co, a joint-venture in China, completed last year.
“We will continue to invest in the region, both organically through capacity expansions to meet the growing demand and by means of acquisitions through a focused M&A approach,” Carlsberg said
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