Carlsberg raises forecast on ‘solid’ performance

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Carlsberg has raised its 2023 profit forecast following a “solid” performance, bucking the trend for disappointing sales in the brewing sector in the first half.

The Danish group said its operating profit grew 5.2 per cent in the first six months of the year, far ahead of analyst expectations of 0.5 per cent. The brewer, which also counts Tuborg, Kronenbourg and Somersby cider among its brands, said like-for-like revenues grew 11.2 per cent, while like-for-like sales volumes grew 0.8 per cent.

Although slightly below analyst forecasts of 1.2 per cent growth, Carlsberg’s positive sales volumes contrasted with declines at competitors Heineken and AB InBev, as well as in the wider consumer goods sector, as companies struggled to maintain sales while continuing to raise prices to offset inflated costs.

Dutch rival Heineken cut its annual profit forecast last month after its sales volumes fell 5.4 per cent in the first half following “the cumulative effect of pricing actions”, according to the company.

AB InBev maintained its forecast but reported a fall in sales volumes of 1.4 per cent. The Belgian brewer suffered from a dramatic decline in US sales after the brand’s collaboration with a transgender influencer led to a conservative backlash.

Carlsberg shares rose 2.3 per cent on the news before paring gains.

The group raised its operating profit growth forecast from an original range of a contraction of 2 per cent to growth of 5 per cent, to growth of 4-7 per cent ahead of reporting its half-year earnings on Wednesday.

Chief executive Cees ’t Hart faces a flurry of questions during earnings calls tomorrow about the status of the brewer’s Russian subsidiary — Baltika breweries — which was seized by the Kremlin and placed under state control last month. Taimuraz Bolloev, a longtime friend of Putin who previously ran Baltika in the 1990s, has been installed as director.

The brewer announced in June that it had found a buyer for the business, without naming them, and warned it would suffer a $1.4bn writedown from the sale. Carlsberg has more exposure to the Russian market than any other international brewer.

Heineken has also identified a buyer for its Russia business, saying recently that the company had taken a total impairment loss of €201mn so far from its partial exit from Russia.

Carlsberg also announced a DKr1bn ($147mn) share buy-back programme.