Danish brewer Carlsberg has reported a 25% increase in half-year net profit, with the recent sale and swap of beer assets as part of a corporate restructuring offsetting a decline in beer volumes and revenue.
The brewer reported first half net profit of 1.87 billion Danish kroner ($283 million), up from 1.50 billion kroner in the same period last year. It reported a total group volume organic decline of 1% to 31.24 billion kroner, primarily a consequence of its “value management initiatives”.
It reported a stable market share in Asia; sequential improvement in Eastern Europe; but a decline in Western Europe.
The company said it still expects to post low-single-digit percentage organic operating profit growth in 2016, despite likely higher spending on its strategy in the second half.
Chief executive Cees ‘t Hart said: “The Carlsberg Group delivered a good set of results in line with our expectations. Most notably, we achieved a solid top-line and profit development as well as a strong improvement in cash flow. With the satisfactory execution of our plans so far, we maintain our full-year outlook for organic growth in operating profit.
“We’re satisfied with the progress on our key priorities for 2016, including the delivery of the benefits from Funding the Journey and the implementation of SAIL’22. Funding the Journey is getting a good momentum throughout the organisation and the priorities in SAIL’22 have received very positive feedback from our employees across markets and functions. We’re now in the process of operationalising the strategy and developing tangible action plans for 2017.”
