Carlsberg profit rises on Asian growth

Carlsberg, the world's fourth-biggest brewer, reported earnings that beat analyst estimates as the company gained market share in Russia.

The company’s operating profit rose 8 per cent in the fourth quarter as improved margins in Western Europe and continued Asian growth offset sluggish sales in Eastern Europe.

Fourth-quarter earnings before interest and taxes rose to 2.32 billion Danish kroner (€311 million) from 2.15 billion kroner a year earlier.

Revenue decreased to 15.7 billion kroner from 15.8 billion kroner a year earlier, beating an average estimate of 15.5 billion kroner.

The company plans to strengthen its Russian business and develop Asian operations to “capture the growth potential of the region,” chief executive officer Joergen Buhl Rasmussen said in the statement.

Carlsberg is seeking to expand in markets including Asia to counteract slowing growth in Europe where tough economic conditions are weighing on beer drinking.

The maker of Tuborg beer is also seeking to reduce reliance on Russia, where it’s the largest brewer and government regulation is curbing alcohol consumption.

So-called organic beer volume, which excludes acquisitions and disposals, fell 3 per cent in the quarter as growth in Asia failed to offset declines in Western and Eastern Europe.

Asian beer volume grew organically by 10 per cent in the fourth quarter, positively affected by the timing of the Malaysian budget and earlier sales into the Chinese New Year, Carlsberg said.

Carlsberg forecasts that western European beer markets will decline “slightly” this year while Asian markets will continue to grow in line with 2013.

Carlsberg shares have dropped 9 per cent in Copenhagen this year before today, while Anheuser-Busch, the world's biggest brewer, declined 4.5 per cent in Brussels.

Bloomberg