Danish brewing giant Carlsberg enjoyed a strong first quarter of 2009, posting a group operating pre tax profit of DKK 735 million compared to DKK 788 million in 2009. The figure was around DKK 100 million better than most analysts had expected. The company’s operating profit margin was unchanged on the same period last year, at 6.7%.
However, despite strong sales, the company’s debt also rose. At the end of March, the company had debts of DKK 37.1 billion, an increase of DKK 1.4 billion in the first three months of 2010.
According to a company statement, strong sales in Europe and Asia were offset by weak sales in Russia, due in part to a major Russian excise tax hike. While overall market share in most areas of Europe improved, the company said, the Russian beer market declined. As a result of the Russian adjustments, it said, earnings would be skewed more towards the second half of the year.
“We are satisfied with the first quarter performance which was in line with our plans and we remain confident in our ability to meet our targets for 2010”, Carlsberg CEO Jørgen Buhl Rasmussen said in a statement issued today. “As expected, the beginning of the year was affected by de-stocking and consequent volume decline in our Eastern European business and we continue to follow our detailed plans for the region”.
“We are particularly pleased with the Asian and Northern & Western European regions in the quarter as revenue growth and efficiency improvements in both regions accelerated profit growth”, he added
However, despite strong sales, the company’s debt also rose. At the end of March, the company had debts of DKK 37.1 billion, an increase of DKK 1.4 billion in the first three months of 2010.
According to a company statement, strong sales in Europe and Asia were offset by weak sales in Russia, due in part to a major Russian excise tax hike. While overall market share in most areas of Europe improved, the company said, the Russian beer market declined. As a result of the Russian adjustments, it said, earnings would be skewed more towards the second half of the year.
“We are satisfied with the first quarter performance which was in line with our plans and we remain confident in our ability to meet our targets for 2010”, Carlsberg CEO Jørgen Buhl Rasmussen said in a statement issued today. “As expected, the beginning of the year was affected by de-stocking and consequent volume decline in our Eastern European business and we continue to follow our detailed plans for the region”.
“We are particularly pleased with the Asian and Northern & Western European regions in the quarter as revenue growth and efficiency improvements in both regions accelerated profit growth”, he added
