Carlsberg profits hit by weak performance in Eastern Europe

Danish brewer Carlsberg on Wednesday announced a drop in its 2014 operating profits due to weak sales performance and currency depreciation in the Eastern Europe markets.

The operating profit in 2014 stood at 9.23 billion Danish kroner (about 1.41 billion U.S. dollars), with a five percent decrease year-on-year, Carlsberg, the world's fourth largest beer manufacturer, said in its annual report.

The Copenhagen-based company also reported a slight rise in its net revenue to 64.5 billion kroner (about 9.87 billion dollars).

In Eastern Europe, Carlsberg's sales volume dropped by 11 percent while its net revenue there fell by 20 percent to 14.1 billion kroner (about 2.16 billion dollars), the report said.

The decline was mainly attributed to the "uncertain and challenging" macro-economic environment and "increasing inflation" in the region, Carlsberg explained.

Its Asian business, however, saw a 17 percent increase in the operating profit in 2014 to 2.195 billion kroner (335.7 million dollars), according to the report.

Predicting a single-digit growth in 2015, Carlsberg expected the Western Europe and Asia regions to continue their momentum of growth, but warned that the expected GDP decline and currency devaluation in Russia and Ukraine will put "significant pressure" on the company's overall performance.

Meanwhile, Carlsberg announced Wednesday that Chief Executive Joergen Buhl Rasmussen is to retire on June 15, 2015.

Cees't Hart, currently CEO of the Dutch dairy company Royal Friesland Campina, will be the new president and CEO of Carlsberg. Endi