IUF logo.

Beerworkers Archive


Post date: 03/29/2016 - 09:50

Carlsberg's full-year performance by region

Carlsberg reported a 1.3% increase in sales in 2015, with operating profits in the year falling by just over 8%. Below breaks down the brewers results by region.

Western Europe - FY sales +3.3%, operating profits -2.7%, volumes +0.9%

Beer volumes grew in France, Norway, Italy and South East Europe, while the company reported volume declines in the UK, Finland, Germany and the Baltics. Away from beer, the company reported a 2% volume lift in organic terms, thanks to a healthy performance in the Nordics and the growth of Somersby cider.

Carlsberg reported a 1.3% increase in sales in 2015, with operating profits in the year falling by just over 8%. Below breaks down the brewers results by region.

Western Europe - FY sales +3.3%, operating profits -2.7%, volumes +0.9%

Beer volumes grew in France, Norway, Italy and South East Europe, while the company reported volume declines in the UK, Finland, Germany and the Baltics. Away from beer, the company reported a 2% volume lift in organic terms, thanks to a healthy performance in the Nordics and the growth of Somersby cider.

The UK market saw volumes fall by 7% in the year, impacted by the loss of "major customer contracts". In October last year, supermarket giant Tesco announced it would pull "a number of" brand Carlsberg SKUs from its shelves in the country.

Eastern Europe - FY sales -22.2%, operating profits -35.6%, volumes -13.9%

Challenging macroeconomics, consumer price inflation and reduced consumer purchasing power put pressure on the overall beer category in Eastern Europe. Volumes were impacted by market share loss in Russia, as trade shifted to the modern on-trade, where the company said it has a below-average market share.

Carlsberg saw a two-percentage-point market share gain in Ukraine, driven by its Lvivske brand in connection with the 300th anniversary of the Lviv brewery.

Currency devaluations in both Ukraine and Russia also contributed to reported sales declines.

Asia - FY sales +22.8%, operating profits +27.5%, volumes +7.5%

Growth in Asia slowed in 2015, primarily due to a declining Chinese market. However, Carlsberg reported "good momentum" in the likes of India, Cambodia and Nepal, and in some provinces and segments in China. Away from beer, the company said other beverages grew organically by 4%, driven by its non-beer business in Laos.

Increasing net sales was a result of favourable currency impact and the Eastern Assets acquisition in China, the company said.

Despite an overall fall in volumes in China, the company said its Tuborg brand grew "more than 50%" in the country last year. Declines came from the mainstream category.

Volume growth in Indochina was driven by the Angkor brand in Cambodia and a solid performance in Laos. The company also opened a brewery in Myanmar, last May.

"Tight cost control" was credited with contributing to a 42% jump in Indian volumes. Carlsberg currently has seven breweries in the country, with approval having been granted to build an eighth. Tuborg, which grew nearly 50%, is now the second-largest beer brand in India. The company also reported "solid" performances in Malaysia and Singapore.