Denmark's Carlsberg Breweries posted a slightly higher-than-expected 15 percent rise in full-year 2002 operating profit but its shares fell sharply in early trading on Thursday in reaction to a bleak outlook for its key growth market Russia. "This was due to...a significant profit increase in Carlsberg Breweries in western Europe and eastern Europe, and good results in Asia," Carlsberg said in a statement.

Carlsberg's half-owned Russian unit Baltic Breweries Holding (BBH) posted a lower-than-expected nine percent rise in Russian market growth in 2002 and said it expected growth at 8-9 percent in 2003, with BBH outperforming the market.

Analysts said ahead of the report they expected Denmark's relations with Russia to have had a negative impact on sales in that region. Cash flow from operating activities rose to 5.6 billion crowns, from 2.2 billion in 2001 and was seen rising further this year.

Carlsberg A/S, the listed holding company that owns 60% of Carlsberg Breweries, said its share of net profit was 1.03 billion crowns when adjusted for one-off items, largely in line with market expectations.

20 February, 2003