Carlsberg delivers 7.4% growth in net revenue driven by higher volumes

DENMARK – The global brewer, Carlsberg Group has confirmed strong performance in the third quarter, with 7.4% rise in net revenue to US$2.68 billion driven by total organic volume growth and price/mix.

According to the company, total volumes grew by 8.6%, impacted by the increased ownership in Cambrew, which was consolidated from 1 August.

International core beer brands delivered strong growth, with Tuborg recording 11% growth in volumes attributed to strong growth in China, India and licence volumes in Turkey.

Carlsberg brand grew by 9%, reflecting positive growth momentum in markets such as India, China, Malaysia, Russia, the UK and the Nordic.

During the period, the group embarked on new packaging designs and sustainable endeavours.

One of the landmark innovations include the launch of Snap Pack, a new design to replace plastic pack rings with a goal to reduce plastic waste globally by more than 1,200 tonnes a year.

Craft & speciality volumes grew by 29% and alcohol-free brews in Western Europe grew by 58%, positively impacted by the warm weather while international brands Grimbergen and 1664 Blanc grew by 15% and 49% respectively.

“We delivered a strong third quarter with all regions performing very well. Our craft & speciality portfolio and alcohol-free brews continued their good momentum, and in Asia Tuborg, Carlsberg and 1664 Blanc delivered strong growth rates.

Results in the quarter were further boosted by the very good weather in Western Europe.

“We’re pleased that last week we were able to increase our full-year earnings expectations, and we feel confident that 2018 will show solid top-line growth, margin improvement and a healthy cash flow, whilst we have invested significant funds in our strategic priorities to drive the long-term growth of our business,” said CEO Cees ’t Hart.

In Western Europe, the company grew organically by 8.5% with strong revenues and volumes in markets such as the Nordics, France, Poland and the Baltics.

The company saw continued positive development in Asia where net revenue grew organically by 11.0% helped by acquisition impact from Cambrew, a Cambodian brewer in which it holds a 75% stake following a recent buyout.

In India, volumes grew by 15% driven by growth of Carlsberg and Tuborg and on the back of easy comparables due to the so-called highway ban last year.

Russia, Kazakhstan, Belarus and Azerbaijan markets posted stronger volumes supported by both price increases and growth of premium offerings, but this was offset by a slight decline in Ukraine.

The company has increased its earnings outlook due to the strong results; it expects to deliver 10-11% organic growth in operating profit for 2018.

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