The first half of 2018 was successful for the Carlsberg Azerbaijan business, which last year managed to stop a two-year decline and go back to growth. At the present moment, the company continues to increase volumes on the wave of a positive trend in the country's beer market.
In the first half of 2018, the volume of company shipments grew by 23% compared to the previous year, which was due to both the growth of the beer market in the country and the firm measures implemented by the company's management during the crisis and post-crisis periods.
Also over the past period Carlsberg Azerbaijan started exporting several products to Georgia and Kazakhstan.
Import brands Carlsberg, Kronenbourg Blanc 1664, Holsten, Seth and Riley's Garage Hard Lemon, included in the company portfolio in 2016-2017, successfully secured a foothold in the local market, thus prompting Carlsberg Azerbaijan to continue testing new brands from the global portfolio of the Carlsberg Group. In 2018, the Azerbaijani consumer was offered a new sort of non-alcoholic beer Baltika 0 Wheat Unfiltered, Karmi Sensual cherry and apple cider Somersby.
In 2018, the company continued to implement the sustainable development strategy Together Towards ZERO, within which Carlsberg Group enterprises have performance targets for ZERO carbon footprint, ZERO water waste, ZERO irresponsible drinking and ZERO accidents. In the first half of 2018, electricity consumption was reduced by 3% gas consumption by 10%, and water by 1% compared to the same period of 2017, despite the increase in volume of production.
Viacheslav Maltsev, Managing Director of Carlsberg Azerbaijan: "I'm glad to see that our efforts to rehabilitate the company and the activities aimed at studying the preferences of the Azerbaijani consumer and their satisfaction on the one hand and at building a transparent and socially responsible business in the country on the other hand, pay off. The growth of tax deductions, investments in the plant development and the increase in workplaces undoubtedly contribute to the development of the Azerbaijani economy. Our main expectation at the moment is the existence of a predictable legislative basis to enable us to be prepared in time for the planned changes in the industry. We support state projects focused on combating the shadow market".
Results of the Eastern Europe region and Carlsberg Group
All markets of the Eastern Europe region of Carlsberg Group showed growth in the first half of the year. Total volumes increased by 3.4%, net revenue by 9.1%, and operating profit by 17%.
The results for Carlsberg Group are also successful: total volumes increased by 3.4%, total revenue by 5.1%, and operating profit by 14.2%.
The Carlsberg Azerbaijan brewery is located in Khirdalan about 10 km from Baku, the capital of Azerbaijan Republic. The company is the largest beer producer in the country. The plant's production capacity is 10 million decaliters per year, and the company employs about 250 people and about 400 are mediated (distributors, agencies, contractors). Carlsberg Azerbaijan's annual deductions to the budget are about 15 million AZN, the company has the status of a tax partner of the Ministry of Taxes of the Republic of Azerbaijan. The total amount of the company's investments in the plant development is about 50 million AZN. The company's portfolio includes such popular brands as Xirdalan, Tuborg, Baltika 7, Baltika 0, Baltika 9, Baltika 4, Baltika KULER, Efsane, Zhigulevskoe Firmennoye, Carlsberg, Holsten, Kronenbourg Blanc, Seth and Riley's Garage Hard Lemon, Karmi Sensual, Somersby.
Carlsberg Group was founded in 1847 and at the present moment is one of the world's largest beer producers. It is headquartered in Copenhagen, the capital of Denmark. Carlsberg Group has plants in dozens of countries in three major regions of the world - Western Europe, Eastern Europe and Asia and its products are represented in 150 countries. The company's portfolio includes more than 140 beer brands. The total number of the Group's employees is more than 41,000.