Carlsberg beats the odds

Brewery giant shows larger than expected profits in 2013

Feb 19, 2014

Carlsberg, the Danish brewery giant and the world’s fourth-biggest brewer, reported earnings that trumped analyst estimates.

Fourth-quarter earnings before interest and taxes rose to over 2.3 billion kroner, up from 2.15 billion kroner during the same period last year. According to the company, the earnings came as something of a pleasant surprise.

“We achieved solid revenue growth driven by strong and focused execution despite the generally challenging macro-economy;” company head Jørgen Rasmussen said in a statement.

Asian and Russian growth
Rasmussen said that the company plans to continue to grow its Russian business and develop its Asian operations to capture the growth potential of the region.

The financial crisis has slowed beer consumption in tradition markets in western Europe, and governmental regulation is curbing alcohol consumption in Russia, so sales actually fell a bit last year, but the company made up the difference in price. They expect that trend to continue in 2014. Although Asian markets are growing, they are not yet offsetting declines in western and eastern Europe revenue.

Carlsberg forecasts that western European beer markets will decline again this year while Asian markets will continue to grow in line with 2013.