Despite gloomy consumer, Carlsberg expects more profit

Like industry peers AB InBev and Heineken, Carlsberg is seeing volumes fall as consumers are deterred by price increases and increasingly renounce alcohol. Still, the brewer expects more profits.

Market share gains in Europe

Carlsberg sold 1.7% fewer beverages in the first half of this year, mainly due to disappointing consumption in Asia. Although total sales rose 18.2% thanks to the acquisition of Britvic, which was completed in January, organic sales fell 0.3%. With an increase of 2.3%, organic profit growth was also below expectations. The loss of the license to sell Spanish beer San Miguel (in favor of AB InBev) also played a role.

“We don’t expect the consumer environment to improve over the remainder of the year,” says CEO Jacob Aarup-Andersen. He does welcome market share gains in Western Europe due to good progress for premium beers, non-alcoholic and soft drinks. The company expects to achieve 3% to 5% operating profit growth this fiscal year despite weak volumes.