Brewer Carlsberg's fourth-quarter net profit drops

Feb 21, 2011, 10:40 GMT

Copenhagen - Danish brewer Carlsberg on Monday reported a drop in fourth-quarter net profit, citing the effect of higher input costs as well as stockpiling of beer in the key Russian market over higher excise duties.

Net profit in the last three months of 2010 fell to 380 million kroner (69.7 million dollars) from 504 million kroner year-on-year.

Sales in the same quarter stood at 13.4 billion kroner compared to 13.6 billion kroner in 2009.

Full-year net profit jumped 49 per cent to 5.4 billion kroner, driven by market gains in Northern and Western Europe as well as Asia, the group said.

Turnover in 2010 was up 1 per cent to 60 billion kroner.

In Eastern Europe, including the group's key Russian market, market shares were flat. Carlsberg had predicted that higher beer excise duties introduced in Russia in 2010 would affect results.

Chief executive Jorgen Buhl Rasmussen said the group expected the Russian market to 'return to growth' in 2011.

In its outlook for Asia, the group expected market growth to continue in 2011. During 2010 a new brewery opened in Hyderabad, India, while construction of another in Vung Tau, southern Vietnam got under way.

Carlsberg, which has a presence in more than 150 markets, said it aimed to offset higher input costs by raising prices in all regions.

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