Carlsberg has upgraded full year earnings expectations on stronger than expected growth in key markets on volume and pricing increases in the third quarter.
The Danish brewer saw organic growth of 11.6% in the third quarter to take organic growth for the first nine months of its year to 17.2%.
In the third quarter organic volumes were up 3.6% (6.9% over nine months) and pricing in terms of revenue per hectolitre was up 8% (10% on a nine month basis).
Asia was the strongest driver of growth up 9.9%, with Western Europe up 2.4% and Central & Eastern Europe down 2.5%.
International premium brands saw mixed volume development, partly due to lower volumes in Ukraine. Tuborg was up 6%, Carlsberg 12% and Grimbergen up 7%, while 1664 Blanc was down 4% and Somersby down 3%.
Reported revenue grew by 13.9% to DKK 20.2bn, with acquisitions contributing -0.8% and currencies +3.1% due to the appreciation of most Asian currencies.
In light of better-than-expected performance in many of Carlsberg’s markets, the group upgraded its earnings expectations for 2022, with organic growth in operating profits of 10% to 12% from previous guidance of single-digit percentage growth.
CEO Cees ’t Hart commented: “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 programmes, well-embedded performance management systems, tools and capabilities, while not losing sight of our long-term SAIL’27 priorities and ambitions.”
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