Carlsberg Raises Shareholder Payout After Posting Forecast-Beating Net Profit

    By Dominic Chopping

Carlsberg AS (CARL-A.KO) on Tuesday proposed a bigger payout for shareholders after posting a forecast-beating full-year net profit as strong growth in Asia offset lower volumes in eastern Europe.

Net profit for 2019 rose to 6.57 billion Danish kroner ($973.0 million) against DKK6.2 billion expected in a FactSet poll and compared with DKK5.31 billion the previous year.

Revenue rose 5.4% to DKK65.9 billion in the year, with a 0.2% rise in beer sales contributing to a 1.4% jump in overall beverage volumes. Analysts polled by FactSet had expected revenue of DKK66.08 billion.

Fourth-quarter revenue rose 3.1% to DKK14.39 billion. The company doesn't disclose full quarterly figures in its full-year trading statements.

The brewer is proposing a dividend increase to DKK21 a share from DKK18 last year, and a new share buyback program of DKK5 billion.

For 2020, the company said it will continue to drive organic net revenue and operating profit growth, while maintaining tight cost control and strict cash discipline.

It expects to deliver mid-single-digit-percentage organic growth in operating profit in 2020, with capital expenditure at constant currencies expected at around DKK5 billion.

Based on the spot rates as of Feb. 3, Carlsberg assumes a positive translation impact on operating profit of around DKK50 million this year.

"We are experiencing a continued difficult competitive environment in Russia," the company said.

"At the same time, we are facing a more volatile business environment including the current coronavirus outbreak in China, of which the full impact is not yet known."

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

February 04, 2020 01:45 ET (06:45 GMT)

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