DENMARK: Carlsberg's Russia revival continues as YTD profits up

• Nine-month net profits edge up by 3.5% to DKK5.42bn (US$933.6m)
• Net sales rise by 5.26% to DKK51.27bn
• Operating profits slip by 4.3% to DKK7.64bn
• "On-track" to meet FY outlook 

Carlsberg has reported an on-going recovery in its key market of Russia, while group year-to-date net profits have also seen a slight rise. 

Net profits edged up by 3.5% to DKK5.42bn (US$933.6m) in the nine months to the end of September, the Danish brewer announced today (7 November). Sales in the same period increased by 5.3% to DKK51.27bn. 

Operating profits in the YTD slipped by 4.3% to DKK7.64bn, but is an improvement on H1 when operating profits decreased by 13.9%. 

In Q3, the company reported a drop in net profits by 29% to DKK2.14bn. Sales rose by 7.9% to DKK18.8bn in the three months, while operating profits increased by 9.5% to DKK3.6bn. 

The company said group organic beer volumes were flat for the YTD, as well as Q3. In Western Europe, the beer market was “challenging” due to poor summer weather and “difficult consumer dynamics” in some markets, the brewer said. 

In Eastern Europe, Q3 beer volumes fell by 2% and by 7% in the nine-months. However, the group said its Russian volume market share improved sequentially for a third quarter in a row, with its YTD market share hitting 38.2%. Q3 volumes in Russia grew by 2%. 

In Asia, the brewer pointed to “strong organic volume growth of 10%” in the YTD, and 7% in Q3. 

CEO Jørgen Buhl Rasmussen said the group's Q3 performance was “in line with expectations”. “It is particularly positive to report that we are back on a growth trend in Russia where in Q3 we grew market share quarter-on-quarter and year-on-year,” he said. 

But Rasmussen added that “becoming more efficient” remains a company priority. “We still see significant long-term opportunities in this area, with particular focus on Western Europe,” he said. 

Looking ahead, the CEO said the group is “on-track” to meet its full-year outlook. 

Shares in Carlsberg are currently up by 2.9% at DKK533. 

For Carlsberg's full statement, click here