Carlsberg returned a net profit of DKK 5.14 billion in 2011 slightly less than 2010, with CEO Jørgen Buhl Rasmussen saying the year was ‘challenging’ with increased costs and a challenging Russian market.

“Northern & Western European and Asian regions continued to perform well, both commercially and financially,” Buhl Rasmussen says in a comment on group 2011 results, which matched expectations published in August.

While Carlsberg increased its volume and returns in Northern and Western Europe and Asia, it lost market share in Russia due to a high level of promotional activities from competitors. The company also says it intends to bid to take over all shares in its Baltika subsidiary.

“The Carlsberg Group intends to make a voluntary offer for the remaining outstanding shares in its Russian subsidiary, Baltika. We will take the necessary steps to arrange for a delisting of Baltika as soon as possible. Full ownership of Baltika will give the Carlsberg Group greater operational flexibility. When completed, the transaction is expected to be immediately earnings-enhancing,” the company statement says.

“In Russia, the steps we've taken to strengthen the business will begin to bear fruit in 2012. At the same time we'll continue to explore acquisition opportunities in growth markets,” Buhl Rasmussen says.

The Russian market dropped some three per cent in 2011 as a result of high levels of inflation on basic foodstuffs and beer price increases in the past couple of years.

Overall Carlsberg sold 118.7 hectolitres of beer in 2011, four per cent more than in 2010 with net revenue at DKK63.6bn, an increase of six per cent.

to European markets and predominantly Greece and Spain.

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