Carlsberg growth propped up by Britvic acquisition

Carlsberg’s sales grew 18% in the first half of the year after its recent acquisition of Britvic made up for several struggles including the loss of its licence to brew San Miguel.

Revenue hit DKK45.9bn (£5.3bn) in the six months to 30 June, with its figures heavily impacted by the two major recent changes to its portfolio.

Without Britvic, organic revenue fell 0.3% after the brewing giant lost its licence to produce and distribute San Miguel to Budweiser Brewing Group from January this year. Organic volumes fell 1.7%.

The Danish brewer is several facing other struggles such as weak demand, tariffs, and poor weather. This meant Carlsberg missed half-year profit and volume forecasts, with the business not expecting any improvement in the consumer environment for the rest of the year.

The company’s operating profit grew by 2.3% to DKK7.23bn (£0.83bn), falling short of analysts’ expectations of DKK7.35bn.

Read more: Why losing San Miguel will hit Carlsberg hard

It nonetheless increased its full-year profit guidance to growth of between 3% and 5%, from a 1% to 5% range previously.

“The group delivered solid results in a difficult half year, with good market share development in all three regions, particularly in western Europe, driven by good progress for premium beer, alcohol-free brews and soft drinks,” said CEO Jacob Aarup-Andersen.

“We don’t expect the consumer environment to improve over the remainder of the year. Nevertheless, we’re continuing our long-term investments in key brands and capabilities, including in areas such as digital, marketing and value management, to create an even stronger Carlsberg.”

Carlsberg said Britvic had a weak first quarter but recovered to deliver “mid single-digit” volume and revenue growth in the second. It is still expecting Britvic’s full-year operating profit to be around £250m.

Across key growth categories, sales of alcohol-free drinks were up 7%, driven by a 12% volumes boost in western Europe.

Its premium beers grew organically by 5%, “supported by increased marketing investments”. Premium Carlsberg volumes were up by 16%, with very strong growth seen in many markets such as China.

Total Carlsberg brand volumes grew by 5%, with mid single-digit growth in the UK offset by lower volumes in other markets such as Denmark and Malaysia.