Denmark's Carlsberg Breweries has posted a worse-than-forecast 31 per cent drop in first-half operating profit, but the company has stuck to its full-year outlook.
Operating profit fell to €168 million in January-June due to economic weakness and a strong Danish crown and fell short of analysts' forecasts.
Carlsberg, one of Europe's big five beer makers, noted "positive" sales trends in June and July and repeated its full-year outlook of an unchanged operating profit of around €500 million. That forecast is seen as rather optimistic by analysts. Net sales fell 7 per cent to €2.2 billion.
"The conclusion of the war in Iraq and the reduced fear of SARS, especially in Asia, led to increased consumer confidence and positive sales developments in June and July," Carlsberg said.
The company said it has begun a plan aiming at improving productivity and capital utilisation.
In Russia - a key market for future growth - Carlsberg's half-owned unit Baltic Beverages Holding posted a 29 per cent fall in operating profit due to a weaker rouble and pressure on beer prices.
In Carlsberg's core, but mature, western European markets, profit dropped 24 per cent to €98 million.