Carlsberg Sees Fiscal Year Operating Profit Down 10%-15%; Stops Buyback Program
August 13 2020 - 2:17AM
Dow Jones News
By Dominic Chopping
Carlsberg AS said Thursday that it expects full-year organic
operating profit to fall 10%-15%, and that it has decided not to
start the second tranche of its buyback program.
The Danish brewer suspended full-year guidance in April but said
Thursday that it is well into the peak summer season and can base
guidance on the first-half, July figures and the current Covid-19
situation in its markets.
Carlsberg prereleased headline first-half figures, expecting an
11.6% fall in organic revenue, an 8.9% decline in organic operating
profit and a 7.7% decline in organic volumes. These figures were
all confirmed Thursday.
Revenue fell to 28.83 billion Danish kroner ($4.55 billion) in
the half, from DKK32.99 billion a year earlier, and overall
beverage volumes fell to 62.8 million hectoliters from 68.1 million
hectoliters. Analysts polled by FactSet had expected revenue of
DKK29.55 billion.
Adjusted net profit attributable to shareholders fell to DKK2.87
billion, in line with estimates of DKK2.88 billion.
"To mitigate the impact of weaker volumes and mix, we've
reinforced our focus on costs, cash and liquidity," said Chief
Executive Cees 't Hart.
"Recognizing that we're faced with a new market reality,
including changed consumer preferences and a reduced level of
on-trade activity, we're taking measures to adapt our business
accordingly.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
August 13, 2020 02:02 ET (06:02 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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