DENMARK: Carlsberg slumps as Russia woes add to Eastern Europe loss | Progresiv
Carlsberg provided a reminder of the difficulties of being Russia’s biggest brewer right now as it reported a widening first-quarter loss in eastern Europe. The operating loss in the region was 155 million kroner (23.3 million dollars) compared with 8 million kroner a year earlier as the volume of beer sold there declined by 16 percent, the Copenhagen-based company said in a statement. 
Carlsberg shares slid, even as the brewer’s overall profit for the quarter beat estimates due to a better-than-anticipated performance in western Europe. The maker of Tuborg has been weighed down by political instability and economic turmoil in Russia and last year started to reduce output there to counter weaker demand and a declining ruble.
The Russian beer market contracted by 9 percent in the quarter, according to Carlsberg, which became the country’s biggest brewer in 2008 when it acquired full control of Baltic Beverages Holding AB. The Ukrainian market shrank by 14 percent.
Group beer volume declined organically by 1 percent in the quarter as eastern Europe’s drop was partly offset by growth of 4 percent in Asia and 5 percent in western Europe, where the company was helped by market share gains and an early Easter. Carlsberg reiterated that it expects “mid- to high-single-digit” organic operating-profit growth in 2015. (www.bloomberg.com)
