5/11/2011 7:00 


A positive start to 2011 – on track to meet full-year guidance


• In the traditionally small first quarter of the year, beer volumes grew by 11%, net revenue growth was 14% to DKK 12.5bn (DKK 11.0bn in 2010) and operating profit grew by 38% to DKK 1bn (DKK 727m in 2010). Comparison distorted by the destocking in Russia in Q1 2010.

• The Group's beer volumes increased by 11% to 23.3m hl with 10% organic volume growth. Adjusting for the Russian destocking in Q1 2010, organic beer volume growth was an estimated 2%, driven by continued growth in Asia and by growth returning to the Eastern European region.

• Net revenue increased by 14% to DKK 12.5bn (DKK 11.0bn in Q1 2010), as a result of 10% organic growth, a positive currency impact of 3.5% and a net acquisition impact of 0.5%. The Group achieved a positive price/mix of approximately 2% with positive contributions being delivered by many markets across all three regions.

• Operating profit increased strongly by 38% to DKK 1,003m (DKK 727m in 2010) with organic operating profit growth of 27%.

• Operating profit growth in the quarter was negatively impacted by the timing of Easter in Northern & Western Europe. Sell-in to Easter in 2010 was in Q1, whilst in 2011 sell-in will be in Q2. The Eastern European region reported strong profits driven by distorted year-on-year comparisons, while higher input costs impacted negatively.

• Net profit grew to DKK 173m compared to the adjusted net profit of DKK 77m in Q1 last year (Q1 2010 reported net profit of DKK 467m adjusted for DKK 390m related to the revaluation in the step acquisition of Wusu Xinjiang Beer Group).

• Net interest bearing debt amounted to DKK 34.6bn (DKK 37.1bn end of Q1 2010). In February, Carlsberg was upgraded to BBB, outlook stable by Fitch; and to Baa2, outlook stable by Moody's.

• On 5 April, the Group launched a new global positioning of the Carlsberg brand with the aim of unleashing the brand's full potential within the coming years. The new positioning will be rolled out across markets throughout 2011 using a wide variety of multimedia and marketing communication channels.

• Supported by slightly higher marketing investments than in 2010, the Group is well on track in the planning and executing of the commercial activities that will deliver the expected profitable market share growth across a large part of the business. 

•  The Carlsberg Group confirms underlying assumptions and full-year outlook:

• Market share growth in markets representing 2/3 of our business

• High single digit percentage growth in operating profit

• Adjusted net profit growth of more than 20% [1]

Commenting on the results, CEO Jørgen Buhl Rasmussen says: “We are satisfied with the Group's performance in Q1, while at the same time acknowledging that in most of our markets, it is a small quarter. We are particularly pleased that the important Russian market has returned to growth. We continue the efficiency agenda with the implementation of several large projects in 2011 and, at the same time, a number of commercial initiatives are taking place to support profitable market share growth. This includes the global repositioning of the Carlsberg brand that was announced in April. That calls for a Carlsberg.”



[1] Reported 2010 adjusted for the DKK 598m non-cash, non-taxable income in special items related to a new acquisition accounting regulation. 



Read the full announcement on the link in the right column on this page. 





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