Latest Stories

Carlsberg says profit slumps on Russian alcoholism curb

COPENHAGEN—Bad weather and a drive by Russia to curb sales of beer to fight alcoholism cut quarterly profit at Carlsberg by 38.0 percent, the Danish brewer said on Wednesday, disappointing analysts.

Net profit in the second quarter fell to 2.074 billion kroner (278 million euros, $372 million) from 3.355 billion kroner 12 months ago.

In the same period last year, results were boosted by the sale of the company’s Copenhagen brewery site.

But the latest figures fell short of the 2.15-billion-kroner expectation by analysts polled by Dow Jones Newswires.

“The ongoing challenging market conditions underpin the importance of our continued efforts to make our business more efficient,” Joergen Buhl Rasmussen said in a statement.

Carlsberg has sought to grow sales by expanding outside western markets — where sales have stalled — into eastern Europe, and bought the remaining minority stake in Russia’s Baltika Breweries last year.

But sales there have been hit by government efforts to battle the country’s drink problem, which have included a ban on sales in kiosks and on late night sales, as well as marketing restrictions.

“It has taken longer than anticipated for consumers to adapt to the changed retail landscape caused by the closure of non-permanent outlets,” Buhl Rasmussen said.

Slowing economic growth in Russia and a drop in consumer sentiment were also weighing on sales, he added.

Sales were also hurt by poor weather in some of the group’s key markets towards the end of the quarter.

The northern hemisphere was hit by a long hard winter this year which ate into the strong spring and summer period for the sale of beer.

Net revenue rose 1.6 percent to 19.64 billion kroner, which was in line with expectations.

Carlsberg said it still expected to post a full-year operating profit of about 10 billion kroner and for adjusted net profit to increase by “a mid-single-digit percentage.”

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: alcoholism , brewery , Carlsberg , Copenhagen , Danish , Dow Jones Newswires , Profit , Russian alcoholism

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Camilla’s brother dies of NYC head injury
  • Nepal officials go to Everest to try to end crisis
  • Escudero ready to defend self should name appear in Napoles’ list
  • Obama calls for peaceful end to island dispute
  • Russia not abiding by agreement on Ukraine—Obama
  • Sports

  • Promoters Dela Hoya, Arum in talks for Pacquiao-Alvarez—report
  • Benzema guides Madrid to 1-0 win over Bayern
  • Suns’ Goran Dragic win NBA’s Most Improved Player award
  • Heat go up 2-0, hold off Bobcats 101-97
  • Ronaldo shakes off injury fears to play Bayern
  • Lifestyle

  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Entertainment

  • Has Ai Ai fallen deeply with ‘sireno?’
  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • Business

  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Cost-recovery provisions for affected gencos urged
  • This time, BIR goes after florists
  • Technology

  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • PH-HK relations repaired, but families of victims still being courted
  • Filipinos in Middle East urged to get clearance before returning
  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Marketplace