DENMARK: Carlsberg profit rise beats expectations

By | 5 August 2008

Carlsberg has said that beer sales in emerging markets remained strong during the first half of 2008, as the Danish brewer announced a 22% rise in operating profit.

Operating profit rose faster than expected to DKK3.58bn (US$744m) for the six months to the end of June, Carlsberg said today (5 August). Net revenue rose 25% (7% on an organic basis) to DKK27m, with organic beer volumes up 6% to 49.6m hectolitres, compared to the same period last year.

The Danish brewer, fresh from its takeover of UK brewer Scottish & Newcastle, sought to re-assure market concerns over reports of slowing growth in emerging beer markets and soaring raw materials costs.

"Even in these more challenging times of raw material price increases and consumer uncertainty in some markets around the world, the growth markets in Eastern Europe and Asia remained strong," it said.

Second quarter beer volumes rose 6.5% in Russia, compared to market growth of 2.8% for the period, spurred on by "significantly higher growth" for premium beers.

The international brands Carlsberg, Tuborg and Baltika all continued their well-established positive trends, achieving volume increases of 5%, 11% and 25% respectively, the group added.

China also continued to develop strongly, it said, helping the Asia division to a 15% revenue rise to DKK1.64bn.

In Western Europe, Carlsberg said that beer price rises helped it offset rising raw material costs, with both sales and operating profits boosted by the S&N takeover.    

The brewer confirmed its full-year guidance of a 10% rise in net revenue and 12% in operating profit. It said that its profit expectations were "based on continuing growth across Northern and Western Europe, Eastern Europe and Asia, including the implementation of general price increases and a continuing increase in beer volumes in the growth markets".

Sectors: Beer & cider

Companies: Carlsberg, Baltika, S&N

View next/previous articles

Currently reading -

DENMARK: Carlsberg profit rise beats expectations

There are currently no comments on this article

Be the first to comment on this article

Related articles

UPDATE US: Fortune Brands in confident spirits

Fortune Brands chief executive Bruce Carbonari has said he remains confident that the group's spirits arm, Beam Global Spirits & Wine, can ride out recession, despite a tumble in sales and profit.

UPDATE UK: Portman Group backs Baroness Coussins in Lords dispute

Drinks industry body the Portman Group has leapt to the defence of former chief executive Baroness Coussins over her active role in shaping drinks labelling legislation in the House of Lords.

just the round-up - The week in drinks

The top ten stories published on just-drinks this week:

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page