DENMARK: Carlsberg warns of tough FY as Q1 performs as expected
- Q1 adjusted net losses total DKK67m (US$12.5m) versus net profits of DKK62m a year earlier
- Net sales in three months to end of March inch up by 1.5% to DKK12.90bn
- Operating profits fall by 27.9% to DKK453m
- Volumes slip by 3.2%
Carlsberg reported its Q1 results earlier today
Carlsberg has seen the first quarter of 2014 perform "in line with our expectations", but has warned that reported profits in the full year will be hit by "a more uncertain macro situation in Russia and Ukraine".
The company said earlier today (7 May) that net sales in the three months to the end of March rose slightly, by 1.5%. Volumes, however, dipped by 3.2%, resulting in a rise in organic price/mix for the quarter of 5%.
Net profits of DKK62m (US$11.6m) in the corresponding period a year earlier turned to net losses of DKK67m, while operating profits were down by 28%. Carlsberg blamed the fall on "the negative currency impact (-14%) and phasing of un-allocated costs" in the quarter.
"In the traditionally small first quarter, the group delivered organic performance in line with our expectations," said CEO Jørgen Buhl Rasmussen. "The Western European business continued its strong performance while results in Eastern Europe were impacted by the uncertain macro situation.
"In Asia, underlying volumes grew by low-single-digit percentages and our premium portfolio continued to perform strongly, driven by growth and share gains in the premium segment."
Looking forward, the brewer maintained its full-year outlook of operating profits growth in the high single-digit area in organic terms, but warned that reported results will be hit "more negatively by currencies than previously anticipated".
Carlsberg's share price fell sharply this morning after the results were released, before recovering slightly. At 1134 CEST, they were 0.9% down at DKK530.
To read the company's official statement, click here.
For a drill-down into the Q1 performance by region and brand, click here.
An analysis of the numbers can be found here.
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