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Carlsberg's H1 results by region - Focus

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Today, Carlsberg reported its first-half results, posting a 25% boost in net profits. Here, we look at the company's performance during the six-month period by region. All figures are organic, unless otherwise stated. 

Carlsberg reported growth in India despite an alcohol ban in Bihar state

Carlsberg reported growth in India despite an alcohol ban in Bihar state

Western Europe

  • H1 net sales up 2%, volumes down 1% 

Carlsberg said a new value management approach contributed to a positive price/mix in the region. Volumes were negatively impacted by the reduction of margin-dilutive volumes in H2 2015 in the UK and Finland in Q1 2016 in Poland

Volumes growth in Norway, Denmark and Sweden failed to offset overall declines of 2% in the Nordics

Volumes growth in France was driven by the Carlsberg, Tourtel, Skøll by Tuborg and Grimbergen brands. The company said its UEFA Euro 2016 activity was an opportunity to engage with consumers. Carlsberg reported share gains in the on-trade but a loss in the off-trade due to competition. 

Poland saw volumes declines of 10%, mainly due to the brewer's decision to pull out of certain low-priced volumes. 

Carlsberg saw volumes decline in the UK as it lost market share. Looking forward, the company pointed to its focus on brand development in the market, including draught craft beer Shed Head

Eastern Europe

  • Net sales up 8%, volumes flat

Net sales in reported terms were down 15% due to currency headwinds from all currencies in the region, Carlsberg said. A challenging macroeconomic environment, especially in Russia and Ukraine continues to hamper performance. 

The Russian beer market declined by an estimated 2% in H1, the company said. Carlsberg volumes were flat for the six months as the brewer saw a deterioration in Q2 of -3% compared to +6% in Q1, when the impact of last year's destocking among wholesalers and distributors in the country was more pronounced. Meanwhile, Carlsberg saw market share improvement driven by the modern trade channel. The Zhigulevskoe, Carlsberg, Baltika 0 and Baltika 9 brands posted a good performance, while Baltika 3 and Tuborg declined. 

The Ukrainian market declined by an estimated 6%. Carlsberg said its business in the country performed strongly, achieving market share growth and margin improvements. The brewer saw market share improvement driven by Lvivske and Carlsberg, along with the launch of the Garage brand.

Asia

  • Net sales up 4%, volumes down 3%

Volumes growth in India, Nepal and Laos failed to offset declines in China. Volumes in the country declined 8%, slightly ahead of the beer market, Carlsberg said. The firm's decision to close breweries in China resulted in a volumes decline of around 25% in affected provinces. However, brewery closures helped boost organic operating profits in Asia by 6%. 

The beer market in India grew 5%, despite an alcohol ban in the state of Bihar, Carlsberg said. The company saw volumes growth of 17%, driven by Carlsberg Elephant and Tuborg. 

Carlsberg's volumes declined in Vietnam due to stocking in Q4 ahead of the Tet festival season. Volumes in Malaysia were impacted by excise tax increases while beer volumes increased in LaosNepal delivered a "very strong performance" due to market growth and price increases in addition to cycling easy comparables because of last year's earthquake, Carlsberg said.

Carlsberg's cost-saving plan "achieving traction" - Analysis


Sectors: Beer & cider, Company results

Companies: Carlsberg

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