Carlsberg now expects 'mid-single-digit' contraction in Russian beer market in 2014 after previously forecasting 'low-single-digit' decline, as uncertain macro situation in eastern Europe having further negative impact on economies and consumer sentiment
May 7, 2014
(Interfax Information Services)
– Danish brewing giant Carlsberg, the largest beer producer in Russia, has revised its 2014 forecast for the Russian beer market downward.
Carlsberg now expects a "mid-single-digit" contraction in the Russian beer market in 2014, the brewer said in its financial statement as of March 31 published on Wednesday. It had previously forecast a "low-single-digit" decline.
"The uncertain macro situation in Eastern Europe is having a further negative impact on the economies and consumer sentiment," the report says.
Ruble weakening had a negative impact on the brewer's operating profit in the first quarter, it adds.
Carlsberg saw beer sales in Russia fall 7% in 2013, the company said earlier. The Russian market fell 8% due to outlet restrictions and a slowdown in economic growth.
The company accounted for up to 38.6% of the Russian market in terms of value last year, up from 38.2% in 2012. The company did not disclose its physical share of the market. Carlsberg raised wholesale prices in Russia on four occasions last year.
Carlsberg is one of the largest beer brewers in the world. Its portfolio includes more than 500 brands, including Carlsberg, Tuborg, Kronenbourg 1664, Baltika and others, and its products are sold in more than 150 countries. Carlsberg sales fell 0.6% in 2013 to 119.7 million hectoliters of beer. The company's revenue grew 0.1% last year to 66.6 billion kroner, or $12.3 billion.
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