Carlsberg raises profit outlook despite half-year revenue dip | Progresiv
Carlsberg has recorded a 0.7% decline in its half-year revenue as its booming Asian unit failed to offset struggling sales in Europe. 
The Danish company – which owns brands such as Grimbergen, Tuborg and Kronenbourg – posted net revenue of 4.7 billion dollars.
However, profit before tax was up 5.1% to 612 million dollars and organic revenue grew by 5%, partly because of warmer weather in Scandinavia and Russia.
Based on its performance and a “good start” to its third quarter, Carlsberg has raised its full-year profit guidance, expecting high-single-digit percentage organic growth.
In its Western Europe unit, which accounts for over half of sales, net revenue was down 2.7%, in part due to the disposal of the German wholesaler Nordic Getränke in April 2017 and a negative currency impact. Total volumes declined organically by 0.5%, while non-beer volumes grew by 1.9%.
In the UK, the company said it experienced a “very good performance” of its premium brands, “growing by double-digit percentages”. However, the Carlsberg brand lost market share, resulting in a total volume decline of 5% in the country.
In its Asian unit, net revenue surged by 7%, thanks in part to the “strong growth” of its international beers Tuborg, Carlsberg and 1664 Blanc.
Net revenue in China rose organically by 17% in a market that grew by an estimated 1%, supported by good weather. The brewer said it saw growth for all its key local power brands, such as Chongqing, Wusu, Dali and Xixia.
Carlsberg CEO Cees ’t Hart said: “We delivered strong results for the first six months of 2018 with healthy top-line growth, margin improvements across the regions, strong cash flow and continued debt reduction.
“We’re pleased to be able to adjust our earnings outlook upwards. This is a proof point that our Sail’22 investments support our ambition of sustainable top-line growth.”
So far this year Carlsberg completed the full acquisition of Greece’s second-largest brewer, Olympic Brewery, strengthening its position in Southern Europe.
The firm also launched a new alcohol-free beer brand in Europe called Birrell, as it hopes to profit from increased consumer interest in low- and no-alcohol beverages.
And earlier this week it announced it increased its stake in Cambodian brewer Cambrew by 25%, meaning it now owns 75% of the company. (www.foodbev.com)
