Carlsberg releases some first half 2020 results

Denmark | To boost its share price, Carlsberg has issued preliminary first half 2020 figures, and warned that its profit declined while the outlook for summer beer sales remains uncertain.

Carlsberg will report first half figures on 13 August. Per its preliminary announcement, Carlsberg’s operating profit fell – organically – by 8.9 percent in the first half.

On the bright side, sales in eastern Europe haven’t yet been hit hard by the pandemic, the firm said, because of its limited exposure to the on-premise there. In fact, Russia’s retailers saw a sharp spike in alcohol sales at the beginning of the lockdown, driven by a rampant myth that alcohol offers some protection against illnesses, including the new coronavirus.

However, the western European region had a very difficult start to the second quarter, but saw improved performance towards the end of the quarter due to the gradual reopening of the on-premise and good weather in June. Still, revenue from western Europe probably dropped 15 percent in the second quarter.

In Asia, Carlsberg’s Chinese business rebounded strongly in the second quarter, and profits improved significantly, driven by cost reductions and the fact that many marketing activities were postponed until the second half of 2020. Sales in the other markets in Asia were significantly impacted by the lockdowns, especially in India and Nepal, Carlsberg said.

Carlsberg has suspended its 2020 guidance.