Danish brewer Carlsberg's turnover dropped nearly 4 % in the first six months of 2016, down to 31.243 billion krona (4.2 billion euro). Nevertheless, net profit grew 25 %.
Lower volumes sold
The brewery group, led by Dutch Cees 't Hart, sold lower volumes in the first six months. Over the first 6 months of 2015, Carlsberg sold 70.9 million hectoliters of beer, down to only 70 million now: mainly because of lower sales in the United Kingdom, Finland, Poland and China in addition to negative volume development in Eastern Europe over the second quarter.
Despite these volume drops, an improved product range helped offset these dwindling volumes as turnover per hectoliter improved 5 %, leading to a 4 % autonomous growth. Averse exchange rates in most markets, like Eastern Europe, Great Britain, Norway and China then wreaked havoc on that growth however.
In the end, the company did present a higher net profit, which grew from 1.495 billion krona (200 million euro) to 1.867 billion krona (250 million euro), partially thanks to one-time income streams.
On course with its regional strategy
Carlsberg also announces that it is on schedule with its most important regional strategies. Western European operational margins grew to 12.1 %, thanks to a better price mix, while the same price mix helped achieve a 4 % organic sales growth in Asia, despite a volume drop in China. Despite disappointing sales in Eastern Europe, the organic turnover growth still reached 8 % in the region.