Carlsberg downgrades expectations after second quarter
They’re probably not the best financial results in the world.
That’s what Carlsberg could deduce after it was forced to downgrade it operational prospects for the year following less-than impressive financial results for the second quarter.
The brewery giant’s operating profit was 12 percent less during the first half of 2015 compared to the same period last year, and it expects its full year results to dip a bit for the year.
“The first half of 2015 has been challenging for the group with weaker than expected results in western Europe and a market decline in eastern Europe,” said Cees ‘t Hart, the new CEO of Carlsberg.
“In western Europe, we experienced bad weather in Q2 in Northern Europe and did not achieve the full range of anticipated savings.”
“For the full year, we therefore do not expect that the strong Asian performance will be enough to offset the weaker than expected results in western Europe and the challenging market conditions in eastern Europe.”
Particularly eastern Europe was tough on Carlsberg’s bottom line this year. The result of operating activities in the division was at 985 million kroner this year, compared to about 1.52 billion kroner during the same period last year.
Distribution in Russia, which has suffered due to sanctions and the weak rouble, fell by 19 percent compared to last year.
The news was more positive in Asia where the brewery enjoyed 11 percent growth boosted by progress in India, Nepal, Cambodia and parts of China.