DENMARK: Carlsberg's H1 boosted by Russia recovery and Asia growth
- H1 net profits leap by 43.2% to DKK3.6bn (US$595.5m)
- Net sales edge up by 3.8% to DKK32.5bn
- Operating profits slip by 13.9% to DKK4.05bn
- FY outlook unchanged, as Russia market improves
Carlsberg has reported a recovery in its key Russian market
Carlsberg has reported a healthy rise in first-half net profits due to the sale of its former brewery site in Copenhagen, while its market share in the Russian beer market grew.
Net profits climbed by 43.2% to DKK3.6bn (US$595.5m) in the six months to the end of June, the Danish brewer announced today (15 Aug). Net sales rose by 3.8% in the same period.
But excluding the DKK1.4bn Copenhagen sale, which was concluded in April, and other post-tax special items, Carlsberg's first-half net profit dropped 11%, to DKK2.14m from DKK2.4m in 2011.
Operating profits dropped by 13.9%.
Total H1 beer volumes rose by 1%, but Carlsberg found the going tough in North & Western Europe as beer volumes climbed 2% driven solely by Poland.
Bad weather has affected a number of drinks companies in the regions, and excluding Poland, which hosted the Carlsberg-sponsored Euro 2012 football tournament, the group's beer volumes fell 3.5%.
Russia saw Carlsberg's beer volumes increase by 2%, with market share improving from 37.3% from 37%. Overall, Eastern Europe beer volumes fell by 10%.
Asia posted stronger growth, with beer volumes climbing by 26% in the first half of the year. The growth was driven by Carlsberg's increased interest in Vietnam's Hue Brewery, Laos's Lao Brewer and India's South Asian Brewery, but even excluding these acquisitions, beer volumes rose by 12%.
“Carlsberg achieved positive market share growth in all three regions, which shows that the recent years’ significant efforts behind our international premium brands, local power brands, and within sales execution are paying off,” said Carlsberg CEO Jørgen Buhl Rasmussen.
“It is particularly satisfactory to see a further improvement in our Russian market share which is a clear sign that our efforts initiated during last year are beginning to bear fruit.”
In Q2, net profits increased by 58% to DKK3.5bn. Net sales rose by 4.5% to DKK19.6bn and operating profit fell by 6% to 3.5bn.
The group said its full-year outlook of operating profit before special items at the level of 2011 and slightly growing adjusted net profit remains unchanged.
Shares in Carlsberg are currently up 1.87% at DKK518.5
Carlsberg will announce its Q3 results on 7 November.
To read Carlsberg's official H1 and Q2 statement, click here.
To read analysts' reactions to Carlsberg's results, click here.
To read details of the company's conference call, click here
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