Eastern Europe boosts first quarter for Carlsberg
A stronger ruble and consumers switching to more expensive beer options have benefited Carlsberg in the first quarter. As the Danish brewer reported on 4 May 2017, volumes in Russia and Ukraine declined 2 percent in the quarter, but net revenue in eastern Europe region grew 10 percent organically to DKK 2.3 billion (USD 340 million) thanks to consumers buying smaller but pricier smaller pack sizes following the ban on 1.5 litre PET bottles for beer.
In Carlsberg’s biggest market, western Europe, turnover went up 2 percent to DKK 7.8 billion (USD 1.15 billion) as volumes rose 2 percent. Analysts touted this as yet another indication that Old Europe is having a comeback as a stable beer market after years of decline.
In Asia, Carlsberg’s results were mixed as total volumes remained flat year-on-year. Carlsberg said Indian volume dropped 20 percent in the first quarter and it expects more of an impact from the country’s ban on alcohol sales near highways in the first half.
However, in China, Carlsberg’s volumes were up 4 percent in a market that declined slightly overall.
Still, revenue from Asia grew 6 percent to DKK 3.6 billion (USD 530 million), making it Carlsberg’s second most important region behind western Europe.
Overall, Carlsberg generated a turnover of DKK 13.7 billion (USD 2.01 billion) during the first quarter compared with DKK 13.0 a year earlier. No information though on Carlsberg’s profits as the brewer does not disclose earnings in its quarterly statements.
As to Carlsberg’s prospects in Vietnam, CEO Cees ‘t Hart reported that he has been in Vietnam three times over the past six weeks to discuss raising Carlsberg’s stake in Habeco, the northern Vietnamese brewer.
