Overwhelmed by meteorological challenges
Russia: down. Western Europe: down. How much worse can it get? On 9 November 2011 Danish brewer Carlsberg reported an almost flat net profit for the third quarter 2011 amid declining sales in most of Europe and Russia. "2011 has been a challenging year and we have faced headwinds from rising input costs, adverse weather conditions and soft trading conditions in our largest market," chief executive Jørgen Buhl Rasmussen said.
In the July-September 2011 quarter, sales slipped slightly to DKK 17.4 billion from DKK 17.7 billion a year earlier as volumes sold dwindled to 40.4 million hl from 40.8 million hl in the third quarter of 2010.
The overall beer markets in northern and western Europe have shrunk slightly since the beginning of the year, a trend that was exacerbated by poor weather conditions across the region in July.
The Russian market, meanwhile, continued its decline due to the negative impact of a steep tax increase in 2010.
The world's number four brewer said that net profit was just over 2 billion kroner (EUR 269 million) in the quarter, marginally higher compared with a year earlier and in line with expectations.
Carlsberg maintained its outlook for 2011, saying its net profit should be between 5 percent and 10 percent higher than in 2010.
It said the full year would be marked by slight declines in the western and northern European markets as well as in Russia – the company's largest market – while its main Asian markets would continue to grow.
Russia is set to raise duty on beer again in 2012. Carlsberg said it was increasing prices this month and expected wholesalers and distributors to build stocks in the final quarter.
