Carlsberg Revenue Up Amid Strong Growth in Asia -- Earnings Review

By Dominic Chopping

Carlsberg A/S (CARL-A.KO) reported first-half earnings on Thursday. Here's what we watched:

REVENUE: The Copenhagen-based brewer saw revenue rise to 32.99 billion Danish kroner ($4.93 billion) in the half, from DKK30.97 billion a year earlier, as its core beer business had strong growth in Asia while sales of its other drinks did well in parts of Europe. Analysts polled by FactSet had expected revenue of DKK33.02 billion.

NET PROFIT: Net profit attributable to shareholders rose to DKK3.08 billion, in line with estimates of DKK3.12 billion.

WHAT WE WATCHED:

GUIDANCE: The Danish company recently upgraded its full-year guidance and now expects high-single-digit percentage growth in organic operating profit, from mid-single-digit percentage growth previously. There were no changes to this in Thursday's results, but it did say it now expects a positive full-year currency translation impact on operating profit of around DKK100 million, from DKK150 million previously. Financial expenses, excluding currency losses or gains, are now expected to be around DKK700 million from a range of DKK700 million-DKK750 million previously. "Last week we were able to adjust our earnings outlook upwards due to the performance in the first half and a solid start to 3Q, and despite tough comparables," said Chief Executive Cees 't Hart.

BEVERAGE VOLUMES: Overall beverage volumes rose 3.7% to 68.1 million hectolitres. Carlsberg said Tuborg, its largest core beer brand, grew by 4% in the half, supported by good growth in China and India, while Carlsberg brand volumes declined by 3%, with growth in markets such as Russia, Malaysia and Vietnam offset by declining volumes, most significantly in the U.K. Alcohol-free brews continued to significantly outperform the beer market in terms of growth, delivering growth of 16%, with very strong growth rates achieved in markets such as Russia, Poland, Sweden, Denmark and Lithuania, it said.

Write to Dominic Chopping at dominic.chopping@wsj.com; @domchopping @WSJNordics

(END) Dow Jones Newswires

August 15, 2019 08:34 ET (12:34 GMT)

Carlsburg AS (PK) (USOTC:CABGY)
Historical Stock Chart
From Jul 2024 to Aug 2024