DENMARK – Danish brewing giant Carlsberg has reported a 3.9 percent increase in organic revenue for the first half of 2024, ending 30 June.
The brewer achieved organic revenue growth across all regions, despite challenges in Western Europe where organic volumes declined by 1.7 percent.
In this region, organic revenue still managed to rise by 1.3 percent, demonstrating the resilience of Carlsberg’s pricing strategy and premium portfolio.
At the group level, Carlsberg’s organic volumes increased by 1.4 percent during the period. This growth was driven by strong performance from key brands, with Carlsberg Danish Pilsner recording a 12 percent increase in volume.
Other prominent brands, including Tuborg, 1664 Blanc, and Brooklyn, saw volume increases of 8 percent, 4 percent, and 4 percent respectively, further bolstering the company’s overall growth.
The brewer also reported a 4.7 percent YoY growth in organic operating profit. This growth was attributed to solid gross profit improvements, which were partially offset by a significant increase of nearly 20 percent in marketing investments.
The company’s continued focus on enhancing its premium portfolio paid off, with the category recording a 4 percent growth, supported by these increased marketing efforts.
Carlsberg CEO Jacob Aarup-Andersen noted: “It’s been an exciting year for Carlsberg with the launch of our refreshed strategy – Accelerate SAIL – and higher growth ambitions, the recommended offer for Britvic, and the signing of an agreement that will give us full control of our businesses in India and Nepal.
These major events will support the long-term health of our business, our brands, and delivery of our long-term growth ambitions.”
The company’s premium portfolio experienced mid single-digit growth in Asia and high-teens growth in Central & Eastern Europe and India (CEEI).
However, volumes in Western Europe were negatively impacted by bad weather, leading to a low single-digit decline.
In July, Carlsberg announced a recommended offer for Britvic plc, valued at approximately GBP 3.3 billion (US$3.87B).
The acquisition, expected to be completed in the first quarter of 2025, will be executed through a scheme of arrangement under Part 26 of the UK Companies Act 2006.
Additionally, Carlsberg attained full ownership of its UK business by acquiring the remaining 40 percent of Carlsberg Marston’s Limited from Marston’s Plc.
Following these positive results, Carlsberg adjusted its earnings expectations for 2024. The company now anticipates a 4-6 percent growth in organic operating profit, citing continued solid business performance and effective cost control.
“Our performance management remains strong, and as a result of continued solid execution and good cost control, we’re increasing our earnings expectations for the year despite volumes in Q2 being challenged by bad weather and weak consumer sentiment in some Asian markets,” concluded Aarup-Andersen.
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