Carlsberg Group Upgrades Full Year Operating Profit Outlook
Carlsberg Group has delivered organic operating profit growth of 17.7% for the first half of 2019 with reported growth of 18.2% to DKr 5.17 billion (€693 million). Organic net revenue growth was 4.2% and on a reported basis net revenue rose by 6.5% to DKr32.99 (€4.42 billion).
Operating margin improved by 160bp to 15.7%. Reported net profit at DKr3.08 billion was up 24.6% and adjusted net profit advanced by 15.1% to DKr2.88 billion.
Group beer volumes grew organically by 0.6%, driven by continued strong volume growth in Asia. Carlsberg Group achieved solid progress for its core beer business, which saw volume and value growth of 1% and 4% respectively. The craft & speciality portfolio delivered growth of 17%, with particularly strong growth rates in Asia and Eastern Europe.
The group’s alcohol-free brews, which mainly consist of local brands, such as Baltika 0 in Russia, Munkholm in Sweden, Nordic in Denmark and Karmi in Poland, continued to significantly outperform the beer market, delivering growth of 16%.
Carlsberg Group’s 17.7% organic increase in operating profit reflected particularly strong growth in Asia and Western Europe, despite a decline in Eastern Europe.
Following the strong performance in 2018, including successful achievement of the Funding the Journey benefits, Carlsberg Group’s overall priorities for 2019 are to drive organic net revenue growth while maintaining tight cost control and strict cash discipline.
Due to the strong financial performance in the first six months of 2019, Carlsberg Group has increased its operating profit outlook for the year. Consequently, the global brewer expects to deliver high-single-digit percentage organic growth in operating profit for the full year.
“We delivered a strong set of results for the first six months of 2019, with healthy top-line development, strong margin improvement and continued solid cash flow,” says Cees ’t Hart, chief executive of Carlsberg Group. “The earnings upgrade is yet another proof point that the execution of our SAIL’22 priorities is driving sustainable, long-term value creation for the group.”
