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Carlsberg sees sales shrink in H1

Xinhua, August 17, 2016 Adjust font size:

Danish brewer Carlsberg saw sales decline in the first half of 2016, largely due to adverse currency movements in most markets, the company said Wednesday.

Carlsberg's net revenue for the first six months of 2016 dipped by 4 percent to 31.2 billion Danish kroner (4.7 billion U.S. dollars), down from 32.4 billion kroner for the same period last year, it said in the interim financial report.

Organic operating profit rose 8 percent to 3.44 billion kroner but slid 4 percent when taking into account a negative currency impact of 389 million kroner.

Total volumes declined by 1 percent in H1 2016, mainly due to anticipated lower beer volumes in Britan, Finland and Poland, a negative volume development in Eastern Europe in the second quarter and a continued market decline in China, it added.

While Carlsberg reported flat turnover growth in western Europe, the sales in eastern Europe and Asia declined 15 percent and 4 percent respectively as compared to the same period last year.

Carlsberg CEO Cees 't Hart said in a statement that the results were satisfactory and in line with expectations, noting that the company achieved a solid revenue and profit development as well as a strong improvement in cash flow.

Meanwhile, the full-year guidance of low-single-digit percentage organic growth in operating profit is maintained, with a negative translation impact on operating profit expected to be around 600 million kroner as against a 550 million kroner last year, based on currency rates as at Aug. 15.

"With the satisfactory execution of our plans so far, we maintain our full-year outlook for organic growth in operating profit," Hart said. (1 U.S. dollar=6.62 Danish kroner) Endit