Cost-cutting measures are casting a long shadow over Carlsberg’s operations.
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Danish brewer Carlsberg says its sales fell globally in the first half of the year due to a drop in demand, especially in eastern Europe, and currency fluctuations.
First-half net profit climbed to 1.87 billion kroner from 1.50 billion kroner in the same period past year.
Sales were down 4 percent at 31.2 billion kroner.
Carlsberg smashed analyst expectations after strong growth in Asia lifted its full-year results in February and the company is targeting growth in China, Vietnam and India as part of its SAIL 2022 strategy, which it outlined in March.
The company maintained its outlook for 2016 of low-single-digit percentages organic operating profit growth, but said translation impact on operating profit from currency exchange is now expected to be around -600 million crowns, down from an earlier -550 million.
Shares in Carlsberg fell 4 percent in morning trade on Wednesday, but Javier Gonzalez Lastra, senior beverages analyst at Berenberg, gave credit to the new management team who, he said, had increased the company’s focus on getting a better balance in terms of market share and profitability.
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Chief executive officer Cees ‘t Hart said he expects organic earnings growth to slow to about 1 per cent in the second half from 8 per cent in the first half on higher costs in Russian Federation, where Carlsberg is the biggest brewer.
