COPENHAGEN, Denmark (AP) — Danish brewer Carlsberg has lowered its full-year earnings forecast after declining beer sales in Russia and Ukraine hurt second-quarter profits.
Carlsberg, which had previously forecast single-digit growth in operating profit in 2015, said Wednesday it now expects a slight decline, citing "challenging market conditions" in Eastern Europe and weaker-than-expected results in Western Europe.
It said the beer market declined 9 percent in Russia and 17 percent in Ukraine, where Moscow is accused of supporting a separatist rebellion. Russia's sanctions on some food products from Western countries don't apply to beer.
Western European sales fell due to bad weather and compared with strong demand during the soccer World Cup a year earlier.
Second-quarter net profit dropped 28 percent to 1.59 billion kroner ($236 million), while revenue fell 2 percent to 18.9 billion kroner.
Carlsberg shares fell 8 percent in early trading in Copenhagen.