Denmark: Carlsberg achieved a total beer volume growth of 24% for H1 2008

Carlsberg’s interim results for the 1st half of 2008 were posted on the company’s official site on August 5.

Total organic beer volume growth of 6% in H1 2008 was driven by continued growth despite tough comparables in Eastern Europe, and in Asia, and a flat overall performance in Northern and Western Europe. Total group beer volume growth of 24% was achieved.

In second quarter organic beer volumes grew by 13% in Eastern Europe; including volume growth in Russia of 6.5% versus market growth of 2.8%.

Total organic growth in net revenue was 7% (10% in local currencies) and in operating profit it was 22% (in local currencies 26%).

Second quarter is imported to have had organic growth in net revenue of 7% (in local currencies 10%; in Northern and Western Europe +3%, Eastern Europe +30%, and Asia +20%). Total organic growth in operating profit in the brewing activities in the second quarter was 16% (in local currencies 19%).

The brewer notes significant improvement of product mix, especially in Russia, where consumer preference for premium beer continues to grow.

Price increases are compensating for rising raw material prices and leading to higher gross earnings. Despite higher selling prices Carlsberg increased its market share in most markets.

Integration of the activities acquired from S&N is running to plan and contributing to realisation of the expected synergies of approximately DKK 1.3 bln three years after the acquisition.

Carlsberg expects organic growth in net revenue of approximately 10% for 2008. Combined with net revenue from acquired activities, this is expected to result in total net revenue for the current year of DKK 62-63 bln. In line with previous announcements, operating profit is expected to grow organically to around DKK 5.9 bln (approximately +12%), including a contribution of approximately DKK 300 mln from other activities. Overall, operating profit for the current year is expected to be in excess of DKK 8.1 bln, while net profit is expected to top DKK 3.0 bln.

The company’s outlook for Russian beer market growth is approximately 5% for the current year - after first-half development and after its estimates as of today for development in July.

Based on the new geographical segmentation, Carlsberg’s new financial target is to increase the operating margins in the medium term for Northern and Western Europe to 14-16% and for Eastern Europe to 23-25%.