DENMARK: Carlsberg Q3 profits up, sales dip

Carlsberg has reported a rise in third quarter profits and said it remains on-track to meet full-year guidance, despite a drop in beer sales.

Net profits for the three months to the end of September rose to DKK1.49bn (US$295m), compared to DKK1.2bn for the same period a year earlier, said Carlsberg today (4 November).

The Denmark-based brewer said that it expects to meet full-year earnings guidance of at least DKK3.5bn in net profits. Like-for-like operating profits for the third quarter rose 22% to DKK7.7bn.  

However, Carlsberg's share price slipped by around 3% in early trading after the group reported a drop in third quarter sales, to DKK16.3bn from DKK18.4bn last year.

A significant proportion of the decline was pinned on Russia, on which Carlsberg relies heavily via its ownership of leading domestic brewer Baltika Breweries. Russia's beer market shrank 10% in the first nine months of the year and the situation is unlikely to improve in the fourth quarter, Carlsberg said.

The brewer again sounded the alarm over the Russian Government's proposal to triple beer duty tax from January 2010, which it said would "clearly affect the beer market negatively".

For the first nine months of 2009, Carlsberg's net sales rose by 1% to DKK45.8bn, with profits up to DKK3.2bn, against DKK2.5bn in 2008.

Group CEO Jorgen Buhl Rasmussen said: "We are currently planning for an equally challenging 2010 and we will be as prepared for 2010 as we were for 2009. Our focus will remain on growing volume and value market share, improving efficiencies and reducing debt."

Alongside its third quarter results, Carlsberg announced further expansion in Vietnam.

For the full announcement, click here.

An update, including details from the brewer's conference call, appears here.