Carlsberg has predicted that Western European beer markets will “decline slightly” in 2014 as it reports a decline in beer volumes in the UK in the first quarter of this year.
The brewer said the Western European beer markets declined by an estimated 1% in Q1, although its beer volumes grew organically by 3%.
“The volumes were negatively impacted by the later sell-in to Easter in the Nordics and the UK this year versus last year whereas the destocking in France in Q1 last year had a positive impact. Beer volumes grew in markets such as France, Poland and Germany while they declined in the Nordics and the UK.”
It gained market share in countries including Poland, Greece and Portugal.
Across the region, net revenue increased organically by 4% to DKK 7,640m. Price/mix grew 1%. Operating profit grew organically by 11% to DKK 440m and operating margin improved 30bp to 5.8%.
Carlsberg said that for 2014, “the Western European beer markets will decline slightly as consumers in many markets remain under pressure, in spite of the macroeconomic situation in some markets having improved slightly”.
Globally, organic net revenue grew 3% to DKK12.9bn in the quarter. Group beer volume declined organically by 3%. Organic gross profit growth of 4%.
The firm said its international premium portfolio continued to grow, with particularly strong performance by Tuborg (+21%) and Somersby (+85%). The Carlsberg brand grew 2% in its premium markets.
Carlsberg said the implementation of the supply chain integration and business standardisation project (BSP1) continues and was in March rolled out in the UK. “More markets will follow in the autumn.”
The company said it maintained its 2014 outlook of a high single-digit percentage organic operating profit growth. “In reported terms, results are expected to be impacted more negatively by currencies than previously anticipated.”
Chief executive Jørgen Buhl Rasmussen said: “In the traditionally small first quarter, the group delivered organic performance in line with our expectations.
“The Western European business continued its strong performance while results in Eastern Europe were impacted by the uncertain macro situation.
“In Asia, underlying volumes grew by low-single-digit percentages and our premium portfolio continued to perform strongly, driven by growth and share gains in the premium segment. We continued to invest in growth and efficiency opportunities, and these included BSP1 roll-out, investments behind brands, building sales capabilities and expanding capacity in growth markets.”
