Carlsberg has bucked the trend for disappointing sales in the brewing sector this year, stating that it had recorded a “solid” performance in its first half and was raising its profit forecast as a result.
The Danish firm revealed that its operating profit had grown 5.2% during the first six months of the year, significantly exceeding analyst expectations of a 0.5% rise. The figure reflected strong revenue growth, partly offset by cost inflation and higher marketing investment.
Meanwhile, the brewer’s organic revenues increased 11.2% during the period, while volumes were up 0.8%. Although slightly below analyst forecasts of 1.2% growth, Carlsberg’s positive volume figure contrasts with recent declines at rivals Heineken and AB InBev, and some other consumer goods manufacturers, which have seen weakening demand for their products following a series of price rises to offset cost inflation.
However, Carlsberg did see volumes fall 2.1% in Western Europe, offset by a 4.8% rise in Asia and strong demand for its premium brands.
Carlsberg raised its operating profit growth forecast from an original range of a contraction of 2% to growth of 5%, to growth of 4-7%.
CEO Cees ’t Hart commented: “We’re satisfied with this solid set of results, which have been achieved in a challenging environment. This is the first year of executing our new strategy, SAIL’27, and we continued to invest in long-term health and growth opportunities despite significant inflation in our cost base. The strategic health of our business continues to improve, as seen from the growth of our international premium brands and continued growth in key markets in Asia.
“Thanks to the results for the first half year, we were able to upgrade our earnings expectations yesterday, and we’re today initiating a new DKK 1bn share buy-back.”
