FDBusiness.com

Carlsberg Group Remains on Course

 Breaking News
  • Diageo Launches New Super-premium Gin Diageo is introducing a new super-premium Italian gin, Villa Ascenti. The launch comes at a time when the super-premium and ultra-premium gin categories are the fastest growing segment within gin in Europe. Villa Ascenti will initially be available in 14 European countries. A new €420,000 (£360,000) distillery has been built on the site of the brand [...]...
  • European Commission Proposes to Increase Price Transparency in the Food Chain Having banned unfair trading practices and improved producer co-operation, the European Commission has presented the third element to improve fairness in the food supply chain by introducing greater transparency in the way prices are reported throughout the chain. The European Commission has tabled a proposal that will make available crucial information on how prices are determined [...]...
  • Irish Distillers Launches ‘A Story of Irish Whiskey’ Podcast Series Irish Distillers, Ireland’s leading supplier of spirits and wines and producer of some of the world’s most well-known and successful Irish whiskeys, has launched its first podcast, ‘A Story of Irish Whiskey’. Produced by Last Cast Media, the five-part series is a story of coming together, sharing, conquering markets and how three families, competitors for [...]...
  • C&C Group Increases Revenue by 187.3% to over €1.5 Billion C&C Group, the UK and Ireland drinks production and distribution business, increased net revenue by 187.3% to €1.575 billion in 12 months ended 28 February 2019, reflecting the acquisition of Matthew Clark and Bibendum from the administrators of Conviviality Group in April 2018. Excluding Matthew Clark and Bibendum, and on a constant currency basis, net [...]...
  • 2 Sisters Accelerates Business Transformation 2 Sisters Food Group has announced a series of actions as part of its accelerating transformational strategy to turnaround the business. The company is making further investments in its UK Poultry and Fox’s Biscuits businesses, and is proposing to reduce the number of its UK Poultry sites in order to produce shorter, more efficient supply [...]...

Carlsberg Group Remains on Course

Carlsberg Group Remains on Course
August 17
10:07 2017

Carlsberg Group has announced organic and reported net revenue growth of 2% to DKr31.77 billion (€4.27 billion) for the first half of 2017 although group beer volumes fell organically by 3%, chiefly due to a decline in Russia. Operating profit was up 15% organically, with all three regions – Western Europe, Eastern Europe and Asia – delivering double-digit growth. Reported operating profit was DKr4.13 billion, corresponding to a growth rate of 20%, as the positive currency impact from Russia and some Asian countries more than offset the small negative scope impact from divestment of businesses. The operating margin improved by 200bp to 13.0%.

Carlsberg Group continues to make steady progress in executing its ‘Funding the Journey’ cost saving and profit improvement programme while implementing its new ‘SAIL 22’ growth strategy, as the Danish brewer strives to consolidate its position in developed markets in Western Europe, improve profitability in Eastern Europe and to expand in emerging markets.

Funding the Journey is progressing as expected, and Carlsberg Group is on track to deliver a large proportion of the expected total net benefits of DKr1.5-2.0 billion this year and the full net benefits in 2018.

The group is also delivered according to plan on its regional financial priorities for 2017. In Western Europe, the operating margin improved by 160bp to 12.5% and organic operating profit grew by 14%. The Asia region delivered organic revenue growth of 6% because of a strong price/mix. Organic operating profit growth was 12%. The Eastern Europe business delivered 17% organic operating profit growth and an operating margin improvement of 320bp despite challenging market conditions.

Cees ’t Hart, chief executive of Carlsberg Group, says: “We delivered a strong set of results for the first half-year, improving earnings and cash flow and reducing leverage. The results show that we’re well on track to deliver on our key priorities for this year: achieving a substantial proportion of the remaining Funding the Journey benefits, enabling investments in SAIL’22-related activities to grow the top-line in the future. Funding the Journey is now well established and being embedded as normal procedure across our markets and functions.”

He adds: “Our strong financial results enable us to accelerate our investments in the SAIL’22 priorities to drive sustainable long-term growth of the Carlsberg Group. The growth of Tuborg in Asia, the expansion of Grimbergen and the further development of our fruitful co-operation with Brooklyn serve as excellent examples of SAIL’22 at this point in time.”

Carlsberg Group is maintaining its financial expectations for 2017 for did-single-digit percentage organic growth in operating profit and financial leverage reduction.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
  • June 25, 2019BevExpo 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements