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CARLSBERG

Danish brewer Carlsberg posts loss after Russia exit

Carlsberg reported a loss for the first half of the year on Wednesday as the Danish brewer's decision to exit Russia hit its bottom line despite surging sales.

Published: 17 August 2022 13:11 CEST
Danish brewer Carlsberg posts loss after Russia exit
Carlsberg announced a dip in profits after quitting the Russian market. File photo: Yves Herman/Reuters/Ritzau Scanpix

Russia accounted for nine percent of Carlsberg’s profits last year, but the group decided to sell its operations there, joining a foreign business exodus following Moscow’s invasion of Ukraine and Western sanctions against the country.

The group booked losses totalling 5.3 billion kroner ($721 million) in the first six months of the year.

But the company reported a 23 percent increase in revenue to 35.4 million kroner over the same period, pushed up by its Carlsberg and Tuborg brands.

Despite the loss, Carlsberg CEO Cees’t Hart said the group’s half-year results were now “well ahead” of pre-pandemic levels.

“We’re very satisfied with the strong set of results for the first half year in light of the severe challenges stemming from the war in Ukraine, rising commodity prices and energy costs, and the pandemic,” Hart said in a statement.

But he warned that “global uncertainty remains high”, with rising costs posing a challenge in coming quarters as inflation soars worldwide.

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BUSINESS

Maersk profits plummet as Yemeni attacks close off Red Sea route

Danish shipping giant Maersk posted a huge drop in net profit for the first quarter on Thursday as Yemeni rebel attacks are forcing it to avoid the vital Red Sea route.

Published: 2 May 2024 10:06 CEST
Maersk profits plummet as Yemeni attacks close off Red Sea route

Maersk reported a net profit of $177 million in the first three months of the year, a 13-fold drop from the same period last year. Turnover fell 13 percent to $12.4 billion, slightly lower than forecast by analysts surveyed by financial data firm FactSet.

The company, however, raised its outlook for the full year, citing higher demand and increased rates and costs due to the supply chain disruptions in the Red Sea.

It now expects an underlying core profit ranging between $4 billion and $6 billion, up from $1 billion-$6 billion previously.

“We had a positive start to the year with a first quarter developing precisely as we expected,” Maersk chief executive Vincent Clerc said in a statement.

“Demand is trending towards the higher end of our market growth guidance and conditions in the Red Sea remain entrenched,” he said.

“This not only supported a recovery in the first quarter compared to the previous quarter, but also provide an improved outlook for the coming quarters, as we now expect these conditions to stay with us for most of the year.”

Iran-backed Huthi rebels, who control the Yemeni capital Sanaa and much of the country’s Red Sea coast, have launched dozens of attacks on ships since November, claiming solidarity with Palestinians caught up in the Israel-Hamas war.

The United States in December announced a maritime security initiative to protect Red Sea shipping from the attacks, which have forced commercial vessels to divert from the route that normally carries 12 percent of global trade.

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