Carlsberg has reported a decline in beer volumes for the first six months of the year

Carlsberg has reported a decline in beer volumes for the first six months of the year

Carlsberg has reported a 25% leap in net profits for the first half of 2016 as its cost-saving initiatives gain momentum. 

The company's half-year net profits reached DKK1.87bn (US$282.5m) in the six months to the end of June, compared to DKK1.5bn in the same period last year. However, the brewer reported a 2.9% dip in beer volumes. Carlsberg said volumes decreases were driven by UK, Finland, Eastern Europe and continued market declines in China.  

Speaking today about the company's cost-saving strategy, CEO Cees 't Hart said he is "satisfied" with progress. 

"The Carlsberg Group delivered a good set of results in line with our expectations," he said today. "Most notably, we achieved a solid top-line and profit development as well as a strong improvement in cash flow. With the satisfactory execution of our plans so far, we maintain our full-year outlook for organic growth in operating profit."

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

Carlsberg outlined its 'Funding the Journey' strategy in November last year. In the first half of this year, the brewer closed several breweries in China and announced an end to its logistics business in the UK. In an update today, the firm said its latest progress includes the sale of its Vietnam brewery Vung Tau as well as the divestment of its 59% share in Carlsberg Malawi.

Looking forward, the brewer maintained full-year guidance to deliver low single-digit organic operating profit growth as well as financial leverage reduction.

Carlsberg's share price was down 5.82% at GMT 1045.

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

For a review of Carlsberg's half-year performance by region, click here