...Stable Credit Profile: Fitch Ratings expects that Carlsberg Breweries A/S's credit profile will remain commensurate with a 'BBB' rating, despite macroeconomic and geopolitical issues in eastern Europe, which in 2013 accounted for 40% of group EBITDA excluding central costs. Fitch believes the increasing importance of Asian markets and the resilience of western Europe, which in 2013 accounted for 51% of group EBITDA, will help to reduce Carlsberg's reliance on Russia over the medium to long term. Profitable Eastern Europe: Carlsberg delivered sound organic operating profit growth of 7% in 1H14, with its profit margin up 170bp despite a 16% negative currency impact. This was achieved in the face of a contracting Russian market, and pricing power being constrained by the pass-through of excise duty hikes. The rise in operating profit demonstrates Carlsberg's strong ability to defend its profits in the region through cost and efficiency programmes. Delayed Russian Recovery: In line with Carlsberg's...
