Russian tax hike hits Carlsberg sales

Danish brewer Carlsberg has reported a marked decline in organic beer volumes in Q4 2010, with the slip attributed to the 200% hike in Russian excise duties that made for a tough comparison with 2009.

The increase in Russian excise duty came into force at the beginning of 2010, with many retailers in the country choosing to stock up their supplies before the rise, meaning comparative figures for Q4 2010 were never going to look flattering.

Organic volumes were down 5%, though Carlsberg estimates that without the Russian stockpiling effect organic volumes would have been flat.

Carlsberg management tried to put a positive spin on the impact of the Russian tax increases, saying: “Importantly, the Russian market was stronger than the Group anticipated at the beginning of the year.”

Net revenue for the full year stood at DKK 60.1 billion (€8bn), up 1% on a reported basis and down 3% on an organic basis. Operating profit increased by 9% to DKK 10,249m.

Looking ahead to 2011, Carlsberg’s chief executive officer Jørgen Buhl Rasmussen said: “We believe market dynamics will improve slightly, not least in Eastern Europe where we anticipate the Russian market to return to growth.”

Carlsberg anticipates high single digit operating profit growth for 2011 and net profit growth of more than 20%.

Alan Lodge, 23.02.2011