Carlsberg posts rise in profit

Carlsberg posted a rise in second-quarter operating profit, beating forecasts, and raised its 2010 outlook due to a stronger …

Carlsberg posted a rise in second-quarter operating profit, beating forecasts, and raised its 2010 outlook due to a stronger Russian market and better rouble exchange rate.

Operating profit at the world's fourth-biggest brewer rose to 4.25 billion Danish crowns (€570 million) from 3.66 billion a year earlier. The average forecast in a poll of analysts was for a marginal rise to 3.68 billion Danish crowns.

Russia, the Danish group's biggest market, tripled its beer excise tax from January 1st to combat alcoholism.

Carlsberg said its key Russian beer market declined by 9 per cent in the first six months due to significant price increases following the tax hike. Carlsberg raised its market share to 40.1 per cent in the second quarter from 39.1 per cent in the first quarter.

The firm said it now expects a high single-digit percentage decline for the Russian market in 2010, pointing to an improving Russian economy and slightly better consumer sentiment, compared with a previous forecast for a low double-digit percentage drop.

Carlsberg said it now sees full-year operating profit at around 10 billion crowns, up from guidance given in February for a profit in line with 2009 when it was 9.39 billion.

Reuters