Russian market lifts for Carlsberg
Carlsberg hailed a boost in sales and market share in its crucial Russian operations as a sign that it had turned the corner in its biggest market.
The Danish brewer eked out volume growth of 1 per cent in the second quarter in Russia and saw its market share increase to 37.3 per cent from 37 per cent.
Russia accounts for about 40 per cent of Carlsberg’s sales and the brewer is close to finishing a $1.2 billion purchase of minority shareholders in its local subsidiary, Baltika. It has invested more than $12 billion in the country over the past two decades.
Russia has been difficult for the Danish group: its bet on the country soured amid unexpected tax increases and falling sales. The maker of Carlsberg, Tuborg and Baltika beers reported operating profit of DKr3.47 billion ($572 million), a 6 per cent decline on the same quarter last year, on sales that grew 5 per cent to DKr19.6 billion.
The sales and marketing push around Euro 2012 also weighed on profitability as it caused a 6 per cent rise in operating expenses. – (Copyright The Financial Times Limited 2012)