Carlsberg Q1 profits up 34% to $23.6m

CARLSBERG Breweries said yesterday its first-half operating profit rose 34% and it would seek further growth in eastern Europe.

The company said its joint venture partner, Britain’s Scottish & Newcastle, owners of Cork brewer Beamish and Crawford, would be a good fit for closer ties.

This makes it probable that Carlsberg could be brewed in the city. Guinness brews Carlsberg under licence in Ireland.

Carlsberg attributed the profit rise to booming sales and profits in Russia and improved earnings in its mature western European markets.

Carlsberg stock jumped more than seven percent to a one-month high.

“We will continue to participate in the brewery consolidation, particularly in central and eastern Europe,” Carlsberg Breweries chief executive Nils Smedegaard Andersen said.

Carlsberg A/S operating profit rose to 1.8 billion crowns ($236 million) in the January-June period.

Carlsberg A/S owns 60% of Carlsberg Breweries.

Russia is Carlsberg Breweries’ third-biggest market, and in a 50-50 percent joint venture with S&N, Carlsberg Breweries owns the country’s biggest brewery group, Baltic Beverages Holding FINE.

“Clearly Scottish & Newcastle fits fine. It has an interesting market position,” Mr Andersen said.

“We are regularly looking at consolidation possibilities in our mature markets, but we are not forced to merge at present,” he said.