News_Q3 2012_UK_WEB.pdf - Carlsberg Group

Q3 November 2012 17Investments in H1 were higher due toEURO 2012 and marketing activitiesahead of the advertising restrictions inRussia as of 23 July.Apart from phasing of marketing investments,operating profit was negativelyimpacted by higher input costs, destockingin Q1, higher logistics costs and thesuspension of production in Uzbekistan.AsiaOur Asian beer markets continued theirstrong growth momentum with all marketsgrowing.Beer volumes increased organically by10% (Q3: 7%). Including acquisitions,beer volumes grew by 22% to 20.4m hl(Q3: 15%). Our volumes grew particularlystrongly in India, Cambodia, Vietnam,Laos, and Nepal.The positive acquisition impact was a resultof the increased ownership in Hue Brewery(Vietnam) and Lao Brewery (Laos) in 2011;in South Asian Breweries (India) in both2011 and 2012; and the Chongqing XinghuiInvestment joint venture in China in 2011.Other beverages grew significantly by 38%(18% organic) due to a strong performancein Laos and Cambodia.Two important commercial activities inAsia were the activation of EURO 2012and the rejuvenation of the Tuborg brand.The EURO 2012 was well leveragedacross the region and provided importantpromotional opportunities for theCarlsberg brand. The brand grew morethan 7% underpinned by commendableperformances in China, India, andMalaysia. The launch of Tuborg in Chinaand the introduction of the new 3G bottlein India were important milestones for theTuborg brand. The brand grew its volumesby nearly 60% across the Asian regionand accounted for more than 10% of theGroup’s Tuborg volumes.Our Chinese market share grew slightlydriven by the strong performance of ourinternational premium brands as we expandeddistribution of both the Carlsbergand Tuborg brands. Our overall Chinesevolumes grew organically by 5% (8%including acquisitions).Our businesses in Indochina continuedtheir very strong growth trend. Organicbeer volume growth in Indochina wasmore than 20% with all countries –Vietnam, Cambodia and Laos – deliveringstrong growth, mainly as a result ofstrong performances by the local powerbrands, Angkor and Beer Lao.In India, our volumes grew organically byapproximately 45%. The growth was drivenby the Tuborg and Carlsberg brands,with the rejuvenated Tuborg brand beinga particular driver. We now have a 7%market share in India. In early October,the Carlsberg Group expanded its positionin India through the acquisition of abrewery in Dharuhera (Haryana). It is theGroup’s sixth brewery in India, adding toour 5 breweries in Paonta Sahib, Alwar,Aurangabad, Kolkata and Hyderabad.The Asian region continued to deliver verystrong financial performance. Organicnet revenue grew by 19% (Q3: 17%) andreported net revenue (including currencyand acquisitions) grew by 38% (Q3: 32%).Operating profit grew organically by 10%(Q3: 11%) and with reported growth of36% to DKK 1,366m.ASIAQ3 Change ChangeDKK million 2011 Organic Acq., net FX 2012 ReportedBeer (million hl) 6.3 7% 8% 7.2 15%Other beverages (million hl) 0.5 17% 13% 0.7 30%Net revenue 1,805 17% 9% 6% 2,389 32%Operating profit 389 11% 11% 7% 502 29%Operating margin (%) 21.5 21.0 -50bp9 mths Change ChangeDKK million 2011 Organic Acq., net FX 2012 ReportedBeer (million hl) 16.7 10% 12% 20.4 22%Other beverages (million hl) 1.5 18% 20% 2.1 38%Net revenue 5,103 19% 13% 6% 7,029 38%Operating profit 1,003 10% 19% 7% 1,366 36%Operating margin (%) 19.7 19.4 -30bp