Post date: 11/11/2015 - 16:14
Carlsberg cuts 2,000 jobs after big third quarter lossDanish brewer Carlsberg announced to slash 2000 jobs or about 15 percent of its white-collar work force, after posting a 4.5 billion kronor ($650 million) loss in the third quarter due to poor performance in Russian, British and Chinese markets.
Danish brewer Carlsberg announced to slash 2000 jobs or about 15 percent of its white-collar work force, after posting a 4.5 billion kronor ($650 million) loss in the third quarter due to poor performance in Russian, British and Chinese markets.
Carlsberg's global beer volumes fell 4% in the first nine months of 2015. In Russia the beer market has gone flat after the government took measures to tackle alcoholism, which have included a crackdown on marketing and banning the sale of beer in kiosks and late at night. Deliveries fell 18% year on year in the third quarter, in a context of destocking. The Danish brewer said inflation is also hitting sales hard in Russia.
Restructuring charges and reductions in the value of its assets relating to Russia would amount to 5 billion Danish crowns, while those relating to the Chinese business would be 4 billion crowns and to the UK business would be 600 million crowns.
In China, while the group is present mainly in the West, national brands sold in more urbanized east have not been as successful as expected, unlike Tuborg, Danish brand. In Britain, Carlsberg deplores the deterioration of its profitability "because of the difficulties of the market" and the breach of contract with Tesco distributor.
The net loss amounted to 4.45 billion kronor (about 600 million), against a profit of 2.10 billion a year earlier. Despite the crisis of the Russian and Ukrainian markets, sales increased 1% to 18.30 billion kroner. This is due to the strong growth of Tuborg (17% of sales over a year), particularly in Asia, and the Belgian beer Grimbergen (16%), especially in France, while the Carlsberg brand was down (- 2%).
The release of these results coincided with the confirmation of a $100-billion deal for market leader AB InBev to buy closest rival SAB Miller.