FDBusiness.com

Impacted by adverse currency factors, Carlsberg Group has reported a 3.6% decline in net revenue to DKr31.2 billion and a 4% drop in operating profit to DKr3.448 billion (€4.2 billion) for the first half of 2016 compared to the corresponding period in 2015. However, on an organic basis revenue and operating profit grew by 4% and 8% respectively, as total group volume declined by 1%, primarily due to value management initiatives. The operating margin improved in all three of Carlsberg Group’s regions – Western Europe, Eastern Europe and Asia.

Carlsberg Group is continuing to invest in its brands and markets to capture the long-term opportunities in Western and Eastern Europe and Asia. In response to the current challenging market environment, Carlsberg Group is refining its business model in order to achieve further efficiency improvements faster. These changes are designed to allow Carlsberg Group to mitigate the significant negative earnings impact arising from the rouble weakness and trading difficulties in Eastern European, while improving cash flow and return on invested capital.

Cees ‘t Hart (pictured), chief executive of Carlsberg Group, says: “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.”

He continues: “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.”