CABGY Carlsburg AS (PK)

By Dominic Chopping

Carlsberg A/S (CARL-A.KO) Wednesday posted a 3% drop in first-quarter revenue amid a tough foreign-exchange environment and as overall beer sales fell, but the Danish brewer maintained its full-year financial guidance as its efficiency programs continued to make progress.

In a quarterly trading update, the world's fourth-largest brewer reported first-quarter revenue of 13.01 billion Danish kroner ($1.99 billion), compared with DKK13.47 billion a year earlier, hit by a negative currency impact of 5%. Analysts polled by FactSet had expected revenue of DKK13.21 billion.

The company still expects organic operating profit growth of low-single-digit percentages in 2016, while it now expects a negative translation impact of DKK550 million, having previously forecast DKK600 million. "Although the major Eastern Europe currencies have strengthened during the first quarter of the year, some Asian and Western European currencies have developed unfavorably," it said.

In the challenging Eastern European market, net revenue grew organically by 20%, though on a reported basis revenue declined 2% due to a significantly negative currency impact, it said. The region saw 6% organic volume growth. Carlsberg estimates that the Eastern European beer markets declined by mid-single-digit percentages in the quarter.

In Asia, net revenue grew organically by 5%, but reported net revenue fell 1%, again due to a negative currency impact. It said the beer market in Asia was mixed in the quarter, with continued growth in India and Nepal, while the Chinese market declined 3%-4%.

Net revenue in Western Europe declined organically by 3% and the brewer estimates the overall Western European beer market was flat for the quarter.

Write to Dominic Chopping at dominic.chopping@dowjones.com; Twitter: @domchopping @WSJNordics

(END) Dow Jones Newswires

May 11, 2016 02:04 ET (06:04 GMT)

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