Carlsberg Group Delivers Solid Financial Performance
Despite the challenging economic environment across Western and Eastern Europe, which resulted in a 2% organic fall in group beer volumes, Carlsberg Group managed to achieve volume and value share growth across all its regions during 2013, while continuing to expand its footprint in Asia. Carlsberg Group’s growing beer volumes in Asia were insufficient to offset the declines in Eastern and Western Europe, as the beer consumption in these markets continued to fall.
Net revenue at DKr66.6 billion (Eur8.9 billion) grew 1% organically in 2013 with a price/mix gain of 2% offsetting a 1% fall in total beverage volume. Carlsberg reported operating profit of DKr9.84 billion, up 1% on the prior year.
Group operating profit grew organically by 5% with all three regions contributing, with particularly strong growth inAsia. Group operating profit margin increased by 10bp to 14.8%. Eastern Europe and Asia improved operating profit margins, while the Western European margin was flat versus last year.
Reported net profit was DKr5.47 billion, down from DKr5.61 billion in 2012. However, the 2012 figure was positively impacted by the disposal of the group’s Copenhagen brewery site.
The group’s portfolio of international premium brands continued to grow, with particularly strong performances by Tuborg (+10%) and cider brand Somersby (+78%). Tuborg is the fastest growing international premium beer brand in China and the largest premium brand in India. The Carlsberg brand declined 2% for the full year but this is in comparison to the strong performance in the previous year when sales were buoyed by activities surrounding sponsorship of the EURO 2012 soccer tournament.
Jorgen Buhl Rasmussen chief executive of Carlsberg.
Carlsberg Group strengthened its presence in Asia during the year, including increased ownership of Chongqing Brewery and construction of breweries in Myanmar and China.
Jorgen Buhl Rasmussen chief executive of Carlsberg, comments: “The Carlsberg Group delivered solid earnings growth driven by strong and focused execution in spite of an overall challenging macro- environment and not least the negative market impact in Russia from the outlet restrictions. This shows our ability to constantly execute and innovate effectively while maintaining tight control of our costs.”
Last year, Carlsberg Group commenced the implementation of its supply chain integration and business standardisation project (BSP1) in Western Europe. BSP1 is designed to improve capabilities, customer service and efficiency, and increase speed and asset utilisation. The programne was introduced into Sweden in April, followed by Norwayin November.
Jorgen Buhl Rasmussen continues: “In the coming years we will continue to invest in growth and efficiency opportunities. We have a busy agenda of driving our ambitious commercial priorities, which include continued investment in our brands and ensuring that our sales and marketing capabilities are best-in-class. Furthermore, we will focus on further strengthening our Russian business; develop our Asian business to capture the growth potential of the region; and change our Western Europe business model and organisation, including the continued roll-out of BSP1.”
