Carlsberg profits soar as Russia recovers

Carlsberg has reported a 43.2% increase in first-half net profit to DKK3.6 billion after the firm benefited from the sale of a former brewery in Copenhagen and a recovery in its Russian business.

Net sales were up 3.8% in the six months to 30 June but excluding the DKK1.4 billion gain from the Copenhagen brewery sale and other special items, net profit sunk 11% to DKK2.14 million, down from DKK 2.4 million last year.

Carsberg reported mixed results in terms of volumes - a 2% volume increase in Russia and 0.3% rise in market share to 37.3% was offset by 3.5% decline in overall volumes after Poland, which hosted the Carlsberg sponsored Euro 2012 football tournament,  was eliminated.  Eastern European volumes slipped 10%.

The company did experience strong sales growth in Asia as volumes climbed 26%  driven by the company's interests in Vietnam's Hue brewery and India's South Asian Brewery.

Net profit in the second quarter was up 58% to DKK3.5 million and net sales increased 4.5% to DKK19.6 million. However, operating profit was down 6% to DKK3.5 million.

Operating profit for the first half was down 13.9%.

"Carlsberg achieved positive market share growth in all three regions, which shows that the recent years’ significant efforts behind our international premium brands, local power brands, and within sales execution are paying off,” said Jørgen Buhl Rasmussen, Carlsberg's chief executive.

“It is particularly satisfactory to see a further improvement in our Russian market share which is a clear sign that our efforts initiated during last year are beginning to bear fruit.”

The company maintained its full year forecast as shares nudged up 1.87% to DKK518.5.