Focus - Carlsberg's H1 Performance by Region
The Danish brewer is still seeing struggles in Western Europe and Russia
Carlsberg reported a slight rise in first-half profits and sales earlier today (21 August). Here, just-drinks takes a look at the brewer's performance by region:
The company's first-half beer volumes fell by 5% to 23.5m hectolitres in the region, while Q2 volumes were also down by 6%. H1 sales by value in the region were up by 2%, but operating profits fell by 5% to DKK2.2bn (US$395m). Carlsberg said it grew market share in Sweden, Norway, Finland, Poland, Portugal and Greece.
In France, price increases at the start of the year and poor weather saw the company's first-half volumes drop by almost 19%. The UK market declined overall by 4%, but Carlsberg said it strengthened its market share in the on-trade, but lost share in the off-trade. Volumes in the Nordics, excluding Denmark were flat.
Eastern Europe (Russia & Ukraine)
First-half beer volumes grew by 3% to 21.9m hectolitres. Sales by value fell by 1% to DKK9.1bn, while operating profits in the region grew by 11% to DKK1.7bn. The Russian beer market declined by around 7% in H1, as the disruption from the enforced closure of beer kiosks hampered performance. However, Carlsberg said it continued to improve its market share. In Ukraine, the market contracted by 3-4% and the brewer's market share was “slightly down”.
Beer volumes in H1 rose by 12% to 14.7m hectolitres. First-half sales by value in the region grew by 11% to DKK5.2bn, while operating profits increased by 14% to DKK986m.
The Tuborg brand grew by nearly 50% in the region as a result of last year’s launch in China, Carlsberg said. The Carlsberg brand grew around 5% in the region, mainly driven by an “impressive” performance in India with Carlsberg Elephant and in China with Carlsberg Light.
In China, H1 volumes grew 5% organically, driven by a combination of growth of Carlsberg, strong Tuborg growth and growth of local premium brands. Q2 volumes were hit by “slightly lower market growth”.
Laos, Cambodia, Malaysia and Singapore also performed well for the brewer, it said.
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