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Post date: 05/13/2015 - 12:44

Carlsberg’s Q1 Results by Region

Carlsberg reported its first quarter results on May 12, 2015, with losses up 34% and revenue rising 4.5%. Please find below the company’s performance during the three-month period by region.

Carlsberg reported its first quarter results on May 12, 2015, with losses up 34% and revenue rising 4.5%. Please find below the company’s performance during the three-month period by region.

Western Europe – Q1 net sales +7%, operating profits +42%

While Carlsberg’s Western European beer markets were flat, the Danish brewer was able to grow its market share strongly, thanks to healthy performances in France, the Nordics, Poland and the Balkans – offset by share losses in Switzerland. Beer volumes rose organically by 5% thanks to positive trends in most markets, but with the exceptions of the UK, Switzerland and Italy. As well as market share gains, volumes were boosted by earlier sell-in to Easter and stocking ahead of the company’s BSP1 new supply chain system roll-out in four markets. The last two factors, Carlsberg warned, will be reversed in the second quarter.

Operating profit growth – with margins improving by 190bps – was driven by a combination of volume growth and efficiency improvements.

Eastern Europe – Q1 net sales -30%, operating loss DKK8m, versus DKK155m

Macroeconomic conditions continued to weigh on the region, with the Russian beer market down 9% and Ukraine declining 14% in the period. Carlsberg said its volume share in Russia was impacted by the introduction of a smaller pack size in last year’s second quarter, but flagged a 50bps improvement in value market share, driven by local premium brands Baltika 7, Baltika 9 and Baltika Razlivnoe.

Volume shipments fell 16% on an organic basis, the company added, thanks to the market declines in Russia and Ukraine, plus further inventory cuts at Russian distributors in response to the shift from traditional to modern trade.

Asia - Q1 net sales +29%, operating profit up 26%

Growth in the altogether more buoyant Asia region was mainly driven by India, Cambodia and Nepal, Carlsberg said, partially offset by declines in Vietnam and Malawi (part of the company’s Asia division). The brewer has returned to positive figures in China, with growth of 1% in a market that declined by an estimated 2%, thanks to a "particularly good" performance in Xinjiang, Ningxia and Chongqing.

"Our international premium brands grew strongly across the region," Carlsberg said, highlighting the performances of Carlsberg Light and Chill in China, and Carlsberg Elephant in India. Meanwhile, Tuborg saw strong growth in India on the back of higher media investments, and more than doubled its volumes in China as distribution there expanded.