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


  • Gunmen kill 20 at Sudan UN base–US envoy
  • S. Korea ferry rescue stalls as anger spreads
  • Sub dives deeper in hunt for missing MH370
  • US urges Myanmar to ease tensions
  • Little known jihadist group vows new Egypt attacks
  • Sports

  • Can Spurs get back at Heat? Can they survive West?
  • Hopkins, 49, seeks win for the ageless
  • LeBron still No. 1 with NBA’s most popular jersey
  • Pacquiao back in PH, heads home to wife, kids
  • Vietnam pulls out of hosting Asian Games due to lack of funds
  • Lifestyle

  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Entertainment

  • Singer Chris Brown’s bodyguard on trial in DC
  • Whoopi Goldberg debuts as marijuana columnist
  • ‘X-men’ director accused of sex assault on teen boy
  • Cannes film festival launches race for 2014 Palme d’Or
  • Jones, Godard, Cronenberg in competition at Cannes
  • Business

  • Barbie doll has a problem
  • Oil prices mixed ahead of long Easter weekend
  • US stocks end mostly higher after earnings deluge
  • Total says makes ‘very promising’ oil find off Ivory Coast
  • ‘Chinese Twitter’ firm Weibo to go public in US
  • Technology

  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Last call for nominations to ’14 Presidential Awards
  • San Francisco business coalition slams proposed tax on sugary drinks
  • A ‘time-travel’ production of ‘Les Miserable’ at Stanford
  • Filipina Maryknoll sister honored for years of service
  • Malaysia quarantines 64 villagers over MERS virus
  • Marketplace