Carlsberg Group Delivers Strong Results
Carlsberg Group has reported a 5.4% increase in revenue to DKr65.902 billion (€8.819 billion) and a 12.2% rise in operating profit to DKr10.465 billion (€1.400 billion) for the year ended 31 December 2019. Organic revenue growth was 3.2% and organic operating profit growth was 10.5%. Group operating margin improved by 100bp to 15.9% and reported net profit jumped by 23.7% to DKr6.569 billion while adjusted net profit rose by 14.9% to DKr6.160 billion.
Cees ’t Hart (pictured above), chief executive of Carlsberg Group, comments: “We’re pleased with our results in 2019. We saw healthy top-line growth, strong margin improvement and strong cash flow. In recent years, we’ve strengthened our business considerably, and we’ll continue to execute on our SAIL’22 priorities and further reinforce our Funding the Journey culture to support long-term growth and value creation for shareholders.”
For 2020, he expects Carlsberg Group to achieve mid-single-digit percentage organic growth in operating profit.
Carlsberg Group is continuing to focus on executing its SAIL’22 priorities to ensure that it captures the growth opportunities for its key strategic priorities – craft & speciality, alcohol-free brews and Asia – as well as strengthening its core beer brands. During the year, Carlsberg Group made steady progress in delivering its 2019 Funding the Journey financial priorities of driving organic revenue growth, maintaining tight cost control and continuing to exercise strict cash discipline.
The global brewer was able to generate solid and sustainable organic revenue growth of 3.2% in 2019 and achieve 10.5% organic growth in operating profit which helped drive a 70bp improvement in ROIC to 8.8%.
Regional Performance
Carlsberg Group also made solid progress during 2019 in delivering against its regional priorities of increasing revenue and operating margin in Western Europe and driving growth in Asia through premiumisation. In Western Europe, organic revenue grew by 0.3%. The operating margin improved by 200bp to 17.0%, while operating profit grew organically by 12.8%.
In Asia, organic revenue growth was 12.3%, driven by +6% price/mix and 6.0% organic volume growth. Organic operating profit growth was very strong at 23.4%. However in Eastern Europe, the brewer failed to achieve its priority of strengthening its market leadership in the region, and volumes declined disappointingly by 5.2% and organic revenue fell by 0.4%.
2019 saw Carlsberg Group complete a number of structural deals to strengthen its global presence. It acquired a non-controlling stake in the Chinese craft brewery Jing-A Brewing Co, purchased the remaining 1.2% of Carlsberg Ukraine, giving it 100% ownership, and bought the remaining 25% of Cambrew in Cambodia. The Danish brewing giant also completed the disposals of the former brewery sites in Trondheim, Norway, and Hamburg, Germany during the year.
Sustainability
During 2019, Carlsberg Group also continued to improve its performance relative to the ambitious targets of the Together Towards ZERO sustainability programme, which has clear priorities and ambitions within the areas of carbon, water, responsible drinking and health & safety. For example, the group reduced its CO2 emissions by 13% and its water usage by 3% in 2019.
