Carlsberg records 7.4% rise in net revenue and raises profit outlook

Carlsberg posted a 7.4% rise in net revenue in its third quarter, driven by “strong growth” in India and China as well the positive performance of its alcohol-free portfolio.

The Denmark-headquartered firm – which owns brands such as Tuborg, Holsten and Somersby – recorded net revenue of DKK 17.59 billion ($2.68 billion) for the quarter.

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.

In Western Europe – the brewer’s largest area by sales – volumes grew organically by 10.7% and net revenue was up 7.7%, as it benefitted from the warm weather and easy comparables due to last year’s poor summer. The firm saw good revenue and volume development in most Western European markets, with “particularly strong” performance in the Nordics, France, Poland and the Baltics.

In Asia, reported net revenue grew by 12.6%, supported by the consolidation of Cambrew, which led to a positive acquisition impact of

Carlsberg

Carlsberg

3.1%.

In China, volumes grew by 6%, supported by the strong performance of its premium portfolio – Tuborg, Carlsberg and 1664 Blanc. Indian volumes grew by 15%, driven by the growth of Carlsberg and Tuborg.

Within the company’s strategic growth priorities, craft and speciality volumes grew by 29% and alcohol-free brews in Western Europe grew by 58%.

Carlsberg CEO Cees ’t Hart said: “We delivered a strong third quarter with all regions performing very well. Our craft and 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.”

During the quarter, Carlsberg revealed a €100 million investment at its Kronenbourg site in Obernai, France, to boost its capacity.

It also announced the decision to ditch plastic rings which connect multi-packs of its beer and replace them with glue, in a move which is set to “reduce plastic waste globally by more than 1,200 tonnes a year”.

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