Mixed Year For Carlsberg Group

 Breaking News
  • £3.7 Billion Worth of Discounts Disappear From UK Supermarket Shelves as Promotions Fall to Lowest Levels in 10 Years The pressure on UK retailers to be more transparent in their pricing has seen the number of trade promotions fall to their lowest levels for 10 years, and in 2017, shoppers will receive £3.7 billion less in promotional savings. This is according to a new report by IRI, the provider of big data and predictive analytics [...]...
  • Whisky, Tequila and Gin to Drive Global Spirits Category Growth to 2021 Just released data from the IWSR 2017-2021 Forecast suggests global volumes of whisky, gin and tequila are expected to make gains of 55.2m, 7.1m and 5.8m nine-litre cases respectively over the next five years, following their rapid growth in 2016. These categories together with baijiu (+48.2m cases between 2016 and 2021), will contribute the most in the [...]...
  • Huge Export Win to China For UK Food Producers A new export deal with China will bring a £200 million boost to the UK food industry and support 1,500 jobs. Taking advantage of the growing demand for UK and drink in China, seven new businesses in England and Northern Ireland have secured access to export pork – including three producers who, in a first [...]...
  • CSM Bakery Solutions Closes Sale of BakeMark Business CSM Bakery Solutions, a global leader in bakery ingredients, products and services, has completed the sale of its BakeMark business to private equity firm Pamplona Capital Management. The sale of BakeMark, which was announced mid-July, is an important element in CSM’s decision to focus on their core business in Europe and North America. “Completing the sale [...]...
  • Needham Coding Ireland to Show Own Brand ‘N’ Series CIJ Printers For the First Time Newly established business, County Westmeath-based Needham Coding Ireland Limited, which was formed following a merger between The Needham Group and long-standing Irish distributor, Advanced Coding Solutions (ACS), will be highlighting a wide range of continuous ink jet (CIJ), thermal ink jet (TIJ) and laser coding and marking equipment, and associated printer inks and makeup at [...]...
  • Mars Food Expands its Portfolio With Acquisition Mars Food, part of Mars Incorporated, is acquiring Preferred Brands International, a US-based, fully integrated manufacturer and marketer of all-natural, ready-to-heat Indian and Asian food products sold primarily under the Tasty Bite® brand. Tasty Bite’s® portfolio includes a wide range of vegetarian offerings, including Indian/Asian entrees, spice and simmer meal kits, and organic rice and [...]...

Mixed Year For Carlsberg Group

Mixed Year For Carlsberg Group
February 11
18:43 2016

Reflecting a continuing decline in its eastern European beer markets, Carlsberg Group has reported a net loss of DKr2.6 billion, including special items of –DKr8.7 billion (€361 million) chiefly relating to impairment and restructuring charges, for the year ended 31 December 2015. Reported operating profit declined by 8% to DKr8.457 billion, affected by a negative currency impact of DKr130 million, and adjusted net profit fell 17% to DKr4.557 billion. Net revenue rose by 13.2% to DKr65.354 billion.

Group beer volumes for the year declined organically by 4% due to the weak Russian and Ukrainian beer markets. Reported beer volumes declined by 2%, with a positive acquisition impact from China and Greece. Other beverages grew organically by 2%, driven by growth in the Nordic and Asian non-beer businesses.

CarlsbergNorthamtonBottles2Operating profit declined organically by 7% as Carlsberg Group delivered strong results of +13% in Asia, a modest decline of 3% in Western Europe and a decline of 19% in Eastern Europe. Group operating profit margin for the year declined by 140bp to 12.9%, primarily as a result of the market decline in Eastern Europe and higher depreciation.

Cees ‘t Hart, chief executive of Carlsberg Group, comments: “2015 was a mixed year for the Carlsberg Group. While our Asian business continues to perform strongly, our businesses in Western and Eastern Europe had a challenging year. As a consequence of the strong Asian results, however, 2015 marked the inflection point when the growth markets of Asia accounted for a larger part of the Group than Eastern Europe.”

Cees 't Hart, chief executive of Carlsberg Group.

Cees ‘t Hart, chief executive of Carlsberg Group.

2015 was a year of significant change for Carlsberg Group as it initiated a two-part, multi-year transition. The first part is Funding the Journey, a programme to improve operational efficiency, announced in November 2015. The programme unifies all existing and new profit improvement initiatives. The second part is SAIL’22, which is the outcome of the strategic review of the business. While Funding the Journey is driving operational effectiveness, SAIL’22 will provide the group with a long-term strategic direction designed to create sustainable value and reverse the more recent top- and bottom-line trends.

Cees ‘t Hart continues: “I’m confident that the strengths of our business in terms of leading market positions, an attractive geographic profile, well-balanced portfolios of strong international and local brands, and committed employees provide us with a strong base upon which to build an organically growing business. The combination of Funding the Journey, which is well on track, and the upcoming evolution of our strategy, which leverages the strengths of our business, will enable us to capture growth opportunities and get into a positive spiral of growing profits and returns.”

In 2016, Carlsberg Group expects to deliver low-single-digit organic operating profit growth and a further reduction in financial leverage.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers