Carlsbergs healthy Asia performance is being dragged down by on-going issues in Europe

Carlsberg's healthy Asia performance is being dragged down by on-going issues in Europe

Earlier today, Carlsberg announced a slight rise in year-to-date net profits, but sales were flat as the group was dragged down by on-going struggles in Russia. Here just-drinks takes a look at the Danish brewer's results by region: 

Western Europe 

Nine-month operating profits in the region edged up by 3% in organic terms, as sales came in at DKK29.5bn, a rise of 1%, Carlsberg said. Beer volumes in the period fell by 3% to 37.6m hectolitres (hl). In Q3, the group reported operating profits up 12% organically to DKK2bn, as sales rose 4% to DKK10.9bn. Beer volumes in the three months edged up 2% to 14.1m hl. 

The region's overall beer market declined by an estimated 2% in the year-to-date due to “the continued challenging macro and consumer environment and tough comparison with the (European Championship football) event in 2012”, the brewer said. However Q3 saw 1% growth in the market, helped by “favourable weather”, except in Poland. 

In France, the group said that its market share improved “for the first time in a long period” in Q3 driven by strong performances by Kronenbourg 1664, Grimbergen and Skøll by Tuborg. Year-to-date market share fell slightly. 

In the UK, the group said the overall market fell by around 1% in the YTD, but was “positively impacted” by good weather in Q3. 

Eastern Europe (Russia & Ukraine) 

Nine-month operating profits on an organic basis edged up by 1% to DKK3bn, while sales slipped 5% to DKK13.7bn, the company said. Beer volumes in the region fell by 4% to 32.9hl. Q3 operating profits dropped 12% organcially to DKK1.3bn, as sales fell 14% to DKK4.6bn. Volumes slid by 15% in the period to 11m hl. 

Carlsberg said the Russian beer market was hit by the “outlet restrictions, very unfavourable weather in September and weaker economic growth and consumer sentiment”. However, it grew its year-to-date market share in Russia to 38.7%. 

The overall Ukraine market fell around 6-7% due to “the macro-economic slow-down and unfavourable weather”. 

Asia 

Carlsberg saw YTD operating profits in the region rise organically by 14% to DKK1.5bn, as sales climbed by 14% to DKK7.6bn. Beer volumes grew organically by 5% to 22.3m hl. Q3 operating profits grew 5% to DKK493m, as sales grew 8% on an organic basis to DKK2.4bn. Beer volumes in the period rose by 1% on an orgainc basis to 7.6m hl. 

In China, volumes grew by 11% including acquisitions and 3% organically, the brewer said, helped by a strong performance from Carlsberg Chill and Light. 

The company is currently in the process of raising its stake in China's Chongqing Brewery to 60%

Carlsberg said its Tubourg brand grew around 65% in Asia and is now the largest international beer brand in India. Overall volumes in India grew by 19%, the group said. 

Expert analysis

China Regional South Beer Market Insight 2012

China Regional South Beer Market Insight 2012

A detailed market research report on the China South beer industry. The report covers total market (on- and off-premise) and includes valuable insight and analysis on beer market trends, brands, brewe...read more