Wednesday 26 April 2017

Carlsberg to maintain 2016 guidance despite below-par first half

A bartender holds a glass of Carlsberg beer in a bar. REUTERS/Alexander Demianchuk/FilesGLOBAL BUSINESS WEEK AHEAD PACKAGE - SEARCH
A bartender holds a glass of Carlsberg beer in a bar. REUTERS/Alexander Demianchuk/FilesGLOBAL BUSINESS WEEK AHEAD PACKAGE - SEARCH "BUSINESS WEEK AHEAD AUGUST 17" FOR ALL IMAGES

Nikolaj Skydsgaard

Danish brewer Carlsberg posted half-year results slightly below expectations, but said it would maintain its 2016 outlook as its cost-cutting strategy shows progress.

The company reported a six-month operating profit before special items at 3.45bn Danish crowns (400.7 million pounds), down 4pc from same period last year, with the beer producer undergoing heavy restructuring to stoke growth.

The company's total sales volumes fell 1pc due to lower volumes in Britain, Poland and Eastern Europe, but organic revenue grew by 4pc.

"The new strategy of finding a balance between volume growth and value creation is already showing its effects," said Sydbank analyst Morten Imsgard.

Group revenue for the half-year amounted to 31.2 billion crowns, just below analyst estimates of 31.8 billion in a Reuters poll.

The company maintained its full-year 2016 outlook of low-single-digit percentages organic operating profit growth, but the impact on operating profit from foreign exchange was raised to -600 million crowns from -550 million.

Reuters

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