BackCarlsberg reports first sales decline in two years
Carlsberg A/S reported its first decline in quarterly sales in two years as lockdowns led to a slump in demand in China, where the Danish company has become one of the most prominent beermakers in recent years.
PremiumCarlsberg A/S reported its first decline in quarterly sales in two years as lockdowns led to a slump in demand in China, where the Danish company has become one of the most prominent beermakers in recent years.
Revenue in the first quarter fell 7.4% on an organic basis, reaching 12.9 billion kroner ($1.9 billion). Analysts expected 12.8 billion. Carlsberg warned second-quarter volumes will decline further.
After years of frugality under Chief Executive Officer Cees ’t Hart, who had intended to invest a portion of the savings into marketing initiatives, Carlsberg is back to cutting costs. Asia had become one of the CEO’s key markets for growth but the impact of the coronavirus has clouded the company’s future in the region. Earlier this month, the company abandoned its financial targets for the year.
Last week, rival Heineken NV laid out some of the near-term risks brewers face, having also scrapped its 2020 forecast. The Dutch beermaker said it expects possible credit losses from customers and may run into problems as small suppliers struggle to keep their businesses operating.
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