Carlsberg has exceeded analysts’ expectations during the first quarter, mainly pushed by sales in China that are rising far above pre-Covid levels.
Geographical diversity
Carlsberg, the world’s third-largest brewery group, posted a turnover of 12.99 billion Danish kroner (1.8 billion euros) – almost stable compared to the previous year. Still, it was more than the 12.86 billion Danish kroner expected by analysts. Volumes rose to 30.3 million hectolitres, from 26.9 million a year earlier.
CEO Cees ‘t Hart acknowledged that the group started the year strong in Asia and Central and Eastern Europe, while Western Europe still suffered from significant lockdowns and Covid restrictions. “Our geographical exposure showed its strength“, he told MarketWatch. Volumes on the Western European market fell by 6 %.
“Regained momentum”
Especially in China, beer sales are soaring: the volume rose by more than 50 % compared to the same period last year and was even 20 % in the first quarter of 2019, before Covid struck. “This is more than just an easy comparison to last year. It shows that we are more than back on track in China and that we have regained our momentum,” ‘t Hart said, according to Reuters. The world’s number two, Heineken, recorded a similar evolution.
Carlsberg is therefore increasing its expectations for this year and is also launching a share buy-back programme. The beer producer now assumes 5 to 10 % organic operating profit growth, compared to the 3 to 10 % initially expected. The company does anticipate a negative exchange rate effect on the operating result. Between now and 13 August, the Danish brewer also wants to buy back up to one billion kroner of its own shares.
