DENMARK – Danish brewer Carlsberg has received a lift in its organic revenue growth of 11.6% for its third quarter from strong demand in Asia, where volumes were up 9.9% on a like-for-like basis.
The world’s third-biggest brewer said Asia, Central & Eastern Europe, and Western Europe were among the markets that delivered the strongest organic revenue growth for Carlsberg in the quarter – 19.3%, 14.7%, and 5.7%, respectively.
In addition, the brewer noted that its international premium brands saw mixed-volume development, partly due to lower volumes in Ukraine.
While Carlsberg’s alcohol-free brews witnessed a 5% decline in Q3, excluding Ukraine they grew 6%, Tuborg, Carlsberg, and Grimbergen had a rise of 6%,12%, and 7%, respectively.
Meanwhile, reported revenue – which includes the impact of acquisitions and currency – grew by 13.9% to DKK 20.2 billion (approx. US$2.72 billion), in line with expectations of US$20.3 billion forecast by analysts in a poll compiled by the company.
Danish Sydbank analyst Per Fogh said he expected an estimated growth increase this quarter of 6-5%, mainly driven by a re-opening and normalization in Laos, Vietnam, and Malaysia affected by corona lockdowns in the corresponding quarter last year.
Carlsberg CEO Cees ‘t Hart said: “We’re satisfied with our performance in Q3 with strong volume growth in Asia and many European markets, which along with a strong price/mix development, led to revenue growth of 11.6%. Our earnings upgrade and the increase in the next quarterly share buy-back are proof points of the resilience of our brands and the strength and agility of our business.”
“Looking ahead, the business environment remains challenging, with an uncertain macro situation, very high inflation, and weakening consumer sentiment.
We will address these challenges and the need for price increases by leveraging our strong commercial programs, well-embedded performance management systems, tools, and capability, while not losing sight of our long-term Sail’27 priorities and ambitions.”
Per Fogh anticipates a growth increase of 2-3% in the Full year’s earnings for the brewer forced by the general growth, especially in the UK, which will continue its rise.
Prompted by the Southern European countries, Per Fogh awaits an improvement in growth volume although Ukraine is not included. Here, an estimated setback in growth of 2,1% is expected.
Carlsberg lifted its outlook after a “better-than-expected performance in many of its markets” and now projects organic profit growth of 10-12% this year, compared to previous guidance for “high single-digit-percentage” growth.
It also increased its share buy-back program for the fourth quarter to 1.5 billion crowns from 1 billion crowns in the third quarter.
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