DENMARK: Carlsberg back in black as Asia comes to Q1 rescue

• Q1 net profit of DKK62m (US$10.9m) versus loss of DKK76m a year earlier
• Net sales increase by 3.9% to DKK13.28bn
• Operating profits grow by 15.1%, hitting DKK661m
• Asia posts 20% organic sales and profits growth

Carlsberg posted strong double-digit sales and profits growth in Asia as the brewer returned to Q1 profit, the company said today (7 May).

Net profits reached DKK62m (US$10.9m) in the three months to the end of March compared to a loss of DKK76m a year earlier, the Danish brewer said today (7 May). Net sales climbed by 3.9% to DKK13.28bn over the same period while operating profits edged up by 15.1% to DKK661m.

Carlsberg's main growth driver in the quarter was Asia, where net sales increased by 13% and operating profits climbed by 14%. Organically, sales and profits were up by 19%. Beer volumes were also strong, up by 18%, with Vietnam, Cambodia and India posting “ particularly strong growth”, Carlsberg said.

The brewery's key Russian market, where Carlsberg has a leading position, saw shipments increase by 6% as the overall beer market in the country declined by mid-single digits, Carlsberg said. The company's market share improved slightly, but net sales in Eastern Europe (mainly Russia and Ukraine) remained flat.

Beer volumes declined by 3% in Western Europe but net sales climbed by 3%, with Carlsberg saying price increases are planned or have been put in place across the region.  

Carlsberg CEO Jørgen Buhl Rasmussen said the traditionally small quarter was in line with company expectations.

Buhl Rasmussen said: “We are very satisfied with the strong performance of our Asian business, which delivered almost 20% organic revenue and profit growth. Our Russian business continued its positive performance, and in Western Europe, underlying profitability improved.”

The results mirrored Carlsberg's 2012 results, released in February, when Russia remained flat and Asia posted healthy growth.

Looking ahead, Carlsberg said it expects its three regions to continue similar performances throughout the year, with cost of sales per hectolitre increasing.

Carlsberg's shares were trading up by about 2% this morning.

Check back later for full coverage of Carlsberg's results.

To read the company's official statement, click here.