Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Carlsberg Falls as Russia Tests Guidance: Copenhagen Mover

July 12 (Bloomberg) -- Carlsberg A/S declined the most among Copenhagen’s benchmark stocks today after JP Morgan Cazenove said the brewer may struggle to meet its guidance.

Carlsberg slid as much as 1.3 percent, the most since July 3. The stock was down 1.2 percent at 538 kroner as of 11:35 a.m. in the Danish capital, the biggest decrease among stocks on the Nasdaq OMX Copenhagen 20 Index. Trading volume was 27 percent of the three-month daily average.

Carlsberg has targeted full-year profit before interest and tax of around 10 billion kroner ($1.7 billion). Signs of shrinking sales in Russia, its biggest market, have called the guidance into question and weighed on the stock, which has lost 2.9 percent this year, compared with an 8 percent gain in the Stoxx 600 Food and Beverage Index. Second-quarter results due Aug. 21 probably won’t ease pressure, JP Morgan said.

“We expect Carlsberg’s second-quarter results to leave it requiring an improved performance” in the second half of the year, Matthew Webb, a JP Morgan analyst, said today in a note to clients. “We see this as achievable, but not conservative.”

The Russian market continues to pose a challenge to the Copenhagen brewer, said Webb, who left unchanged his neutral recommendation and 545-krone target price. “We retain our long-standing concerns about the Russian beer market, which accounts for almost 40 percent of Carlsberg’s group EBIT,” he said.

To contact the reporter on this story: Peter Levring in Copenhagen at plevring1@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.