Carlsberg retains FY forecast despite weak Q1 | Progresiv

Carlsberg has said it is sticking to its full-year forecasts, despite reporting a drop in revenue for its first quarter.

For the quarter, net revenue declined by 5% to 1.8 billion euros, although they grew by 2% on an organic basis.  The results were affected by a 8% drop in Western Europe and a 14% fall in Eastern Europe, although this was slightly offset by a 6% increase in Asia.

Overall beer sales grew by 1%, as a 12% jump in Asia offset a 3% decline in Western Europe and a 6% slide in Eastern Europe.   Sales of other beverages were down 5% (+2% organic), as a 16% jump in Asia was negated by a 5% decline in Eastern Europe and a 9% drop in Western Europe.

Carlsberg’s results were particularly hurt by its Russian operations, which account for 20% of its revenues.  The group said it continued to lose market share in the country, and Russia was the only market where its volumes declined, which it attributed to “increased promotional pressure in the PET segment”.

CEO Cees ’t Hart said the “growth in craft & speciality and alcohol-free brews as well as the broadly based growth in Asia serve as proof points for our SAIL’22 agenda.”  He added: “Funding the Journey is delivering according to plan and we’re well on track to deliver on our full-year expectations.”

Carlsberg continues to expect a mid-single-digit percentage rise in operating profit (on an organic basis) for the full year. (www.kamcity.com)