CABGY Carlsburg AS (PK)

   By Dominic Chopping 
 

Carlsberg AS (CARL-A.KO) reported full-year results for 2019 on Tuesday. Here's what we watched:

REVENUE FORECAST: The Copenhagen-based brewer reported a 5.4% rise in revenue to 65.9 billion Danish kroner ($9.7 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.

NET PROFIT FORECAST: Net profit for 2019 rose to DKK6.57 billion against DKK6.2 billion that was expected in a FactSet poll and compared with DKK5.31 billion the previous year.

WHAT TO WATCH:

GUIDANCE: 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."

SHAREHOLDER RETURNS: The brewer proposed a dividend increase to DKK21 a share from DKK18 last year, and a new share-buyback program of DKK5 billion.

BEVERAGE VOLUMES: Full-year total beverage volumes rose to 134.9 million hectolitres from 133.1 million hectolitres last year. In the fourth quarter, total volumes slipped to 28.3 million hectolitres from 28.9 million hectolitres against a FactSet estimate of 28.6 million hectolitres.

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

(END) Dow Jones Newswires

February 04, 2020 04:39 ET (09:39 GMT)

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