Carlsberg is upgrading

17-08-2010 10:54 Successful sales during the football world cup and not least a needed helping hand from the important Russian beer market have made the Carlsberg management upgrade its expectations for 2010. Russia is Carlsberg’s most imporant market, but since the acquisition of Scottish & Newcastle in 2008 it has also been the brewery’s constant source of trouble.
A considerably more positive rouble exchange rate compared to Carlsberg’s estimates and an improvement of the Russian economy now means that Carlsberg has lifted its expectations for the financial year. Operating profit is now expected at around DKK 10 billion compared to previous expectations of operating profit being in line with that reported for 2009 of DKK 9.4 billion. Net profit growth is now expected to be around 40 per cent compared to previous expectations of more than 20 per cent. The 2009 net profit amounted to DKK 4.2 billion.

The upgrading is based on the second quarter results of over DKK 2.6 billion. The second quarter result for 2009 was below DKK 2 billion. The two first quarters of 2010 have increased Carlsberg’s operating profit by 12 per cent to DKK 5 billion, as increased sales and marketing investments have strengthened the brewery’s market shares in a large part of the business. Operating profit margin improved to 17,2 per cent.

CEO Jørgen Buhl Rasmussen noted that Carlsberg has delivered strong results with increasing profit margins in spite of a challenging consumer pattern. »We will continue to balance our plans to improve efficiency and margins with our ambitions to drive top-line growth,« he said. He noted that Carlsberg has strengthened its market positions across all three regions.