Carlsberg H1 net profit up 25% despite fall in sales
Staff Writer |
Carlsberg reported that its net profit attributable to shareholders for the first-half of 2016 rose to 1.867 billion Danish Kroner or 12.2 Kroner per share from 1.495 billion Kroner or 9.8 Kroner per share in the same period last year.
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The latest-period results was positively impacted by special items of 406 million Kroner and negatively impacted by an increase in corporation tax. The increase in corporation tax primarily related to a lost tax case in Finland earlier this year.
The tax expense related to this is non-recurring and has no impact on cash flow this year.
Group operating profit increased organically by 8%, with positive contribution from all three regions. Reported operating profit was 3.448 billion Kroner.
This was a decline of 4% and a result of a translation impact of -11% and a net acquisition impact of -1%. Group operating profit margin improved organically by 50bp but was -10bp in reported terms.
Adjusted net profit was 1.403 billion Kroner, a decline of 19% versus last year. The decline in adjusted net result was due to a negative currency impact and the aforementioned tax expense, which more than offset organic operating profit growth and lower financial costs. Adjusted earnings per share was 9.2 Kroner.
If correcting for the one-off expense related to the Finnish tax case, adjusted earnings per share would have been 11.2 Kroner.
Net revenue for the period declined to 31.24 billion Kroner from last year's 32.40 billion Kroner, while it was up 4% on organic basis.
Total volumes declined organically by 1%. Mainly due to anticipated lower beer volumes in the UK, Finland and Poland, a negative volume development in Eastern Europe in the second-quarter and a continued market decline in China, beer volumes weakened, being down 2% organically.
The Carlsberg brand grew by 6% and Tuborg by 11%. Other beverages grew organically by 4%, driven by growth in the Nordic soft drinks businesses.
Based on the results of the first six months and July, the Group maintains its financial outlook for 2016 unchanged and expects to deliver low-single-digit percentage organic operating profit growth. ■