FDBusiness.com

Deteriorating Beer Markets in Eastern Europe Will Adversely Impact Carlsberg

 Breaking News
  • Lactalis Expands in Infant Nutrition With €740 Million Acquisition Lactalis Group, the international dairy group based in Laval, France, is acquiring the Nutritional business of Aspen Pharmacare for €739.8 million (R12.9 billion). The business being acquired supplies a wide range of infant nutritional and growing-up milk products across both the premium and value segments. It manufactures and markets well established quality brands, including S-26, [...]...
  • Thatchers Cider to Invest £14 Million in New Cider Mill Thatchers Cider, the family owned English cider producer, is to invest £14 million in a new cider mill at its Myrtle Farm site in Somerset to meet growing demand for its products. The company has applied for planning permission and, if granted, the new mill would come on stream in 2019. “This investment is about our [...]...
  • Coca-Cola Great Britain Teams Up With Premier League Premier League and Coca-Cola Great Britain have announced a new three-and-a-half-year partnership, starting in January 2019. It is the first sponsorship Coca-Cola Great Britain will activate across multiple brands within its portfolio, showcasing a range of drinks including sparkling soft drinks, water and fruit-based drinks, with low and no-sugar options. The partnership will see Coca-Cola work [...]...
  • Barry Callebaut Completes $30 Million Capacity Expansion in North America Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products, has announced the completion of several expansion investments in three of its North American facilities located in St Hyacinthe, Quebec; Chatham, Ontario; and St Albans, Vermont. The investments amount to close to US$30 million and are in line with previously announced plans. Recent investments [...]...
  • Strong First Half From Hilton Food Group Hilton Food Group, the UK-based leading specialist international food packing business, has reported a 25.0% increase in turnover to £863.6 million and by 24.5% on a constant currency basis for the 28 weeks to 15 July 2018. Volumes increased by 12.7% reflecting growth in the UK, Ireland and Australia. Operating profit for the first half [...]...

Deteriorating Beer Markets in Eastern Europe Will Adversely Impact Carlsberg

Deteriorating Beer Markets in Eastern Europe Will Adversely Impact Carlsberg
August 22
10:42 2014

Carlsberg Group expects the continuing challenging economic conditions in some countries in Eastern Europe and destocking among distributors in Russia, a major market for the Danish brewer, to adversely impact its second half financial performance. Carlsberg expects reported adjusted net profit to decline by mid- to high-single-digit percentages (previously low-single-digit growth). Reported operating profit is expected to decline low- to mid-single digit percentages versus last year (previously low- single-digit growth). Organic operating profit is projected to grow low- to mid-single-digit percentages (previously high-single-digit percentages).

In the first half of 2014, Carlsberg reported a 0.7% rise in operating profit to DKr4.1 billion on net revenue up 1% to DKr32.1 billion. Despite a strong beer volume performance in Western Europe, group beer volume declined organically by 3% impacted by market decline in Eastern Europe. The group’s market share increased in its Asian region and was flat in Western Europe. Group market share declined in Russia during the first half.

Jorgen Buhl Rasmussen (pictured), chief executive of Carlsberg Group, comments: “I am satisfied with the financial results of the group for the first six months. Our focus on key priorities and strong execution in our markets and central functions have strengthened our business commercially and increased profits and cash flow. We continue to grow our international premium brands across markets, with particularly strong performance in Asia where Tuborg has become the number one international brand in India and is the fastest growing international premium brand in China. Our Western European region delivered another set of strong results driven by solid topline performance and continued execution on an ambitious efficiency agenda.”

He continues: “In Eastern Europe, our teams are doing an excellent job mitigating the impact of the current market challenges. Unfortunately, we believe the Eastern European beer markets will be impacted further as consumers are facing increased challenges and this will impact the group’s profits negatively this year. We will continue to do what is right for our business long-term, and this includes investing in our brands, keeping commercial activities at a high level and at the same time balancing value and volume. But we will also make tough decisions and adapt the cost structure to ensure that we maintain a strong and very profitable Eastern European business.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
  • September 30, 2018Trade Fair for Butchers, Caterers and Meat Industry (Meat Expo)
  • October 1, 2018Poznan International Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements