Craft beer boosts Carlsberg profit

Danish brewery group Carlsberg has published some strong financial results, with an organic turnover increase of 6.5 % and a 9 % net profit growth as the (more expensive) craft beers were its fastest growing branch.

Strategic brands

De group sold 112.3 million hectolitres of beer and 20,8 million hectolitres of other beverages last year, a small growth for both. Excluding acquisitions, turnover went up by 6.5 % to 62,5 billion Danish crowns (8,4 billion euros). Net profit went up 9 % tot 5,4 billion crowns (720 million euros). Craft beers and special beers were the fastest growing branch (+ 26 %), while alcohol-free beers had a strong growth in Western Europe (+ 33 %). The group’s major brands all performed well, with growths for Kronenbourg 1664 blanc (+ 49 %), Grimbergen ( 14 %), Tuborg (+ 10 %) en Carlsberg itself ( 5 %).

The results are a pat on the back for Dutch CEO Cees ’t Hart, whose strategic vision included an investment focus on its strategic brands and a reduction of costs. Carlsberg now starts buying back its own shares, for an amount of 4.5 billion crowns (600 million euro). This will allow the stock prices to rise, rewarding investors. The company has also promised a handsome growth of its dividend.