(Bloomberg) --
Carlsberg A/S warned that beer consumption will drop more after reporting its first decline in quarterly sales in two years as lockdowns led to a slump in demand because so many bars and restaurants are closed due to the Covid-19 pandemic.
Revenue in the first quarter fell 7.4% on an organic basis, reaching 12.9 billion kroner ($1.9 billion). Analysts expected 12.8 billion. Carlsberg said Thursday that second-quarter volumes will decline further. The fell as much as 1.1%.
After years of frugality under Chief Executive Officer Cees 't Hart, who had intended to invest a portion of the savings into marketing initiatives, Carlsberg is back to cutting costs. Asia had become one of the CEO's key markets for growth but the impact of the coronavirus has clouded the company's future in the region. Earlier this month, the company abandoned its financial targets for the year.
Last week, rival Heineken NV laid out some of the near-term risks brewers face, having also scrapped its 2020 forecast. The Dutch beermaker said it expects possible credit losses from customers and may run into problems as small suppliers struggle to keep their businesses operating.
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