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Carlsberg suffers probably the worst day of trading in the world

Brewer’s shares plunge by 19% as poor sales in Russia put big dent in profits

Carlsberg shares have had their worst day of trading ever in Denmark after the brewer announced that second quarter net profit declined 22% year on year, thanks mainly to an increase in alcohol taxes in Russia.

Carlsberg gets 40% of its sales from Russia where it owns the market-leading Baltika beer, which it developed with Scottish & Newcastle before buying out the British company’s share three years ago.

But the Kremlin’s attempts to crack down on alcoholism has seen beer taxes rise threefold, causing bottom line quarterly profit to fall to 2.1bn kroner (£245m), down almost 22% from 2.6bn kroner a year earlier.

Shares dropped by as much as 19%, the worst intra-day decline ever recorded, wiping 10bn kroner off the company’s value.

Carlsberg chief executive Jørgen Buhl Rasmussen said that results in Russia had been “below expectations” and that a recovery would take longer than expected as Russian consumers adapt to an approximate 30% increase in the price of beer. © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds