Carlsberg’s overall beer sales down in 2013
Is flat the new high? Reporting full year 2013 results, brewer Carlsberg said that net sales were flat at DKK 66.55 billion (USD 12.3 billion), while operating profits also came in flat at DKK 9.85 billion (USD 1.8 billion). However, Carlsberg on 19 February 2014 posted a drop in full-year profits as volumes and sales declines in Eastern Europe outpaced growth in Asia.
Net profits in calendar 2013 were down 2.5 percent to DKK 5.47 billion (USD 1.0 billion), the Danish brewer said.
Global beer volumes declined 1 percent as volumes in Russia, one of Carlsberg’s core markets, sank by 7 percent because of continued pressures on consumption. Net sales in the country fell 11 percent and operating profits were down 3 percent. The overall beer market in Russia, which accounts for about 40 percent of Carlsberg’s profits, has been in decline for several years since the government imposed outlet restrictions, including banning beer sales from street kiosks. In effect, the 2013 results appear to underline a worsening environment in the country after 2012 full-year results remained flat.
There were also volumes declines in Western Europe, which were compensated by rising profits and sales, as higher margin products such as Somersby Cider performed well.
On the positive side, Carlsberg’s Asian market continued to grow, helped by a number of investments in the region over the year, including increasing the stake in Chongqing Brewery and the construction of breweries in Myanmar and China. Asia beer volumes were up 19 percent, with net sales climbing 11 percent and operating profits 38 percent.
Looking ahead, the company forecasted full-year operating profits to grow by mid-single digits in 2014.
