E-Malt.com News article: 3093

Carlsberg A/S announced on 12 August 2004 its net interest-bearing debt was reduced by DKK 5.6bn in Q2 2004 and totalled DKK 23.4bn as at 30 June 2004. Holsten transaction was completed faster and more effectively than originally planned. High organic volume growth and a successful Carlsberg marketing campaign in connection with EURO 2004 in Portugal. Net revenue rose by 6% compared with first half-year 2003 measured in local currencies. Operating profit exclusive of property gains was at level with last year, despite DKK 250m increase in marketing expenses. When including property gains, operating profit rose by 23%. Carlsberg A/S' share of profit (before goodwill, etc.) was DKK 384m compared with DKK 363m in first half-year 2003 (+6%). Bad weather in Northern Europe continuing in July will adversely affect full-year operating profit (EBITA). Therefore, expectations to operating profit, inclusive of property gains, will not be revised upwards. Carlsberg A/S’ share of profit (before goodwill, etc.) for 2004 is revised upwards and is expected to be at the level of DKK 1.5-1.6bn. (DKK 1,179m last year).

During the first half-year of 2004, Carlsberg announced it had achieved significant progress in the pro rata calculated beer volume to a total of 29.1m hl (25.8m hl last year), corresponding to growth of 13%. Gross volume for the beer business also showed positive developments with an 8% increase - 6% of which was organic growth - to a total of 42.7m hl, while the soft drink and water business experienced a slight decrease to 9.5m hl following the sale of the water business in Switzerland during the first half of 2003.

The Carlsberg brand showed a volume growth of 12%. During the period, net revenue rose by 4% to DKK 16,929m. Growth measured in local currencies was 6%, which reflects, among other things, the continued progress of BBH and the inclusion of revenue from Holsten. Operating profit was DKK 1,541m corresponding to a 23% rise compared with the same period last year. Operating profit includes property gains of DKK 410m against DKK 107m last year. Furthermore, operating profit was affected by increased marketing costs especially in Russia and in connection with EURO 2004 in Portugal. Marketing costs in the first halfyear were approximately DKK 250m up on last year, reaching DKK 1.2bn. The not distributed costs have risen by approximately DKK 80m due to increased marketing costs and start-up costs relating to the Excellence programmes.


14 August, 2004