UK: Carlsberg slashes pre-tax losses for latest financial year

Pre-tax losses were slashed at the UK arm of beer giant Carlsberg during the company's latest financial year, newly filed documents have revealed, Insider Media reported on June 26.

Headquartered in Northampton, Carlsberg UK has reported pre-tax losses of £404,000 for the 12 months to 31 December 2019 compared to losses of £8.5 mln in the prior 12 months.

Its turnover went from £430.1 mln to £414.7 mln over the same period.

At the end of 2018 the company announced that Julian Moment was to leave in March 2019 and be replaced as chief executive by Tomasz Blawat.

A statement signed off by the board said: "2019 saw the UK beer market decline by 1 per cent in volume, in line with long-term trends, following a healthy performance in 2018 with sales boosted by the hot summer and the World Cup.

"Both the on-trade and off-trade channels saw similar levels of decline from a volume perspective, however, both saw retail value sales growth which was driven predominantly by a shift in mix."

The business added that premium products had proved popular during the period, alongside world and craft beers which, together with alcohol-free beer, had outperformed the market.

In contrast, standard lager continued to struggle, with heavy declines from key brands resulting in net volume declines of 2.3 per cent.

The accounts come after brewing giants Marston's and Carlsberg UK formed a joint venture to create a brand-led UK brewer of scale.

Marston's, which is listed on the London Stock Exchange and headquartered in Wolverhampton, is to receive a 40 per cent stake in Carlsberg Marston's Brewing Company (CMBC) and a cash equalisation payment of up to £273m. Carlsberg UK will receive a 60 per cent stake.

The deal values the Marston's brewing business at up to £580m and the Carlsberg UK brewing business at £200m.

On the current Covid-19 pandemic, the company added: "Since the balance sheet date, there has been significant macro-economic uncertainty as a result of the coronavirus outbreak, the scale and duration of which inherently remains uncertain.

"This has had a significant impact on the business.

"The directors are monitoring and reacting to the situation and have put in place contingency plans to safeguard our employees and to mitigate the developing risks."

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