Carlsberg Group's has reported that their operating profit in the second quarter has declined 13 percent, due to a decline in Eastern and Western Europe, according to a press release issued by Carlsberg.
The company also reported a 1 percent decline in its organic gross profit.
Bad weather in Western Europe and challenging market conditions in Eastern Europe are said to be the cause of the decline, according to the press release.
The company also said that anticipated savings in Northern Europe was not achieved.
Carlsberg CEO Cees 't Hart, who joined the company in mid-June, said in the press release that first half of the year has been "challenging" for the company.
"The first half of 2015 has been challenging for the Group with weaker than expected results in Western Europe and market decline in Eastern Europe," he said. "In Western Europe, we experienced bad weather in Q2 in Northern Europe and did not achieve the full range of anticipated savings."
Reuters adds that Carlsberg has been hit by the recession in Russia and its tight regulation in the beer market.
The company was also affected by the conflict in Eastern Ukraine.
Reuters adds that Carlsberg's disappointing results is opposite from one of its rivals Heineken NV, the world's third largest brewery.
Heineken reported better than expected earnings in the first half.
Hart added in the press release that they do not expect their full-year forecast to do well amidst the disappointing data.
"For the full year, we, therefore, do not expect that the strong Asian performance will be enough to offset the weaker than expected results in Western Europe and the challenging market conditions in Eastern Europe," he said.
Carlsberg has cut its organic operating profit forecast to decline slightly at the end of 2015, according to the press release.
The company previously expected a mid to high-single-digit-growth for its earnings in 2015.
