CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Carlsberg sales affected by Russia Ukraine tensions

Article By: ,  Financial Analyst
August 21, 2014 10:15 AM

Ongoing tensions between Russia and Ukraine have begun to impact on the beer market.

Danish brewer Carlsberg announced a significant dip in sales across both countries and warned that it is expected to affect its yearly profits. The company stated that beer volumes in Russia had declined by between six and seven per cent while in Ukraine this figure had dropped by ten per cent.

Officials stated that Russia had experienced a downturn in the second quarter of the year due to the "uncertain macroenvironment" and "weak economic development". These figures comes despite Carlsberg's Baltika beer brand being the largest selling beer in Russia. However, the brand saw its market share fall by 1.2 per cent to 37.4 per cent over the course of the quarter. This was attributed to the introduction of smaller packs.

Jorgen Buhl Rasmussen, Carlsberg chief executive, said: "In Eastern Europe, our teams are doing an excellent job mitigating the impact of the current market challenges.

"Unfortunately, we believe the Eastern European beer markets will be impacted further as consumers are facing increased challenges and this will impact the group's profits negatively this year."

Away from Eastern Europe, Carlsberg had recorded a four per cent increase in organic net revenue while organic gross profit growth had also increased by six per cent. Its beer volume performance in Western Europe had once again been strong with its premium brands such as Tuborg, Somersby and Grimbergen delivering positive growth.

Tensions between Russia and Ukraine have led to the former being hit with increased sanctions from the European Union, US and other nations. Russia recently responded by imposing a full embargo on food imports with these selected nations. It has sparked fear of job losses in certain sectors which conduct a lot of business with Russia and has relied on it for imports.

Find up to date information on spread betting strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024