Carlsberg is the largest subsidiary Baltika beer producer in Russia with a market share of 37 percent.
Russian beer market fell 7.6 percent in the first half.
Clouds
Both Carlsberg and Dutch Heineken is preparing for even worse times and weaker earnings in Eastern Europe, the rest of the year.
– The conditions are difficult and will probably be worse, says analyst Frans Hoyer in Jyske Bank to the American news agency Bloomberg.
Carlsberg has 16 breweries in Russia and four other of the former Soviet republics. The Danish owners do not exclude that more breweries may be closed.
Fewer pints
Sales measured in the number of pints or volume fell 13 percent in the second quarter. Higher prices limited income decline by 4 percent.
The company announced Wednesday that the results for the entire 2014 is worse than previously announced, due to the weak development in Eastern Europe.
Foreign exchange
In addition to the sales decline and recession in the Russian economy, affected Carlsberg of the fall in value of the Russian currency.
The weakening of the ruble so far this year means that the net profit to 100 million Danish kroner less.
Downturn in the stock market
Carlsberg’s shares fell nearly 7 percent since the Copenhagen Stock Exchange opened despite the fact that the group presented a quarterly profit that was better than expected.
Later on the day the stock rose and took back some of the lost.
upturn in the stock exchange
Exchange in Amsterdam reacted opposite.
Heineken shares rose 7 percent, significantly because the group presented a quarterly profit that was much better than analysts expected.
Results
Heineken increased in the first half operating profit by 9.6 per cent to 1.5 billion euros (12.4 billion. kr) and sales by 4.6 percent to 10.2 billion euros (84 billion. kr) from the same period last year.
Carlsberg presented quarterly: Driftsresultaet increased by 5.9 per cent to 3, 6 billion Danish kroner (NOK 4 billion. kr), while turnover increased by 4 percent to 32.1 billion Danish kroner (35.5 billion. kr).
Presses
beer producers over the whole world is under pressure – both because people’s drinking habits change – they drink more alcohol – and they affected by the competition from the many small micro breweries springing up locally, according to Bloomberg.
On top of this comes the increased tension between Russia and Western countries because of conflict in Ukraine.
– All markets in Eastern Europe are affected by large uncertainties. It looks black. It can already see that consumption in Russia has been a tremendous kink, says analyst Morten Imsgard in Danish Sydbank to the Danish news agency Ritzau Finance.
There is nothing to suggest any imminent recovery, he says .
Tougher in Asia
Carlsberg owns 100 percent of the Russian brewery Baltika as the Danes established in 1990 with the Norwegian Orkla. Orkla sold its later out of beer brewing.
Both Carlsberg and Heineken brands stronger competition in the world’s most populous markets – Asia.
The world’s largest brewer, Belgian-Brazilian Anheuser-Bush InBev, announced Wednesday that the company opens its first brewery in Vietnam in 2015, the newspaper said nguoi Lao Dong.
The new brewery will produce Budweiser and other beer brands to Vietnam and other countries in Southeast Asia, writes Bloomberg.
Carslsberg are already in place in Vietnam and has brewed and sold beer since 1993 the company has a market share of 34 percent, according to Carlsberg’s website.
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