COPENHAGEN (dpa-AFX) - Shares of Carlsberg AS (CABGY.PK) rose 4 percent in Copenhagen Wednesday morning after the Danish brewer backed its full-year outlook, despite posting a loss for the first quarter. The company said its first-quarter results were affected by volume decline and slightly higher input costs.
Carlsberg noted it experienced solid growth in Northern & Western Europe and strong performance in Asia. In Northern & Western Europe, beer volumes increased 5 percent, but in Eastern Europe, volumes dropped 22 percent impacted by the expected destocking in Russia. Beer volumes surged 26 percent in Asia.
Net revenues for the quarter grew 3 percent to 12.87 billion Danish kroner from 12.53 billion kroner in the prior-year quarter. Organically, revenue development was flat, due to Russian destocking.
Total beer sales volumes declined 2 percent to 22.9 million hl. Group beer volumes declined organically by 4 percent. Adjusted for destocking in Russia, organic beer volume grew 2 percent.
CEO Jørgen Buhl Rasmussen said, 'In the traditionally small first quarter of the year, the Group delivered continued solid growth and performance in Northern & Western Europe and Asia, while destocking impacted our Russian results as expected. Our Q1 results were in line with our plans and we are on track to meet our 2012 expectations.'
In the first quarter, loss attributable to shareholders was 76 million kroner or 0.5 kroner per share, compared to a profit of 173 million kroner or 1.1 kroner per share reported last year.
The company said its operating profit dropped 43 percent to 574 million kroner, reflecting lower Russian volumes and destocking and phasing of sales and marketing investments. Operating margin declined 350 basis points to 4.5 percent.
Looking ahead to full year 2012, the company still projects slightly higher adjusted net profit and operating profit before special items flat with 2011. In 2011, adjusted net profit was 5.20 billion kroner and operating profit was 9.82 billion kroner.
In Copenhagen, Carlsberg shares are currently trading at 490 kroner, up 3.79 percent.
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© 2012 AFX News
