Carlsberg grows profits despite flat Russian beer market

DANISH brewer Carlsberg today revealed that sales growth stalled in its key Russian market in the fourth quarter of last year.

The group forecast that as a result operating earnings this year would reach only about 10 billion Danish krona (£1.12bn), down from 9.8bn krona in 2012, and behind consensus market forecasts of 11bn krona.

Carlsberg also scrapped its target for an operating profit margin of 26-29 per cent for eastern Europe by 2015, its last reported margin in the region being 21.7 per cent in 2011.

Carlsberg took over Scottish & Newcastle Breweries’ Russian arm in 2008 as part of a break-up bid of the Scottish company with Heineken of Holland.

But growth has been hit by a Russian government drive to curb alcohol abuse, including excise tax increases and a ban on media advertising.