Carlsberg Lifts Profit View As Beer Sales Recover In Europe And China
Danish brewer Carlsberg raised its full-year profit guidance on Wednesday after reporting third-quarter revenue slightly above expectations, helped by a recovery of beer sales in Europe and China....
Danish brewer Carlsberg raised its full-year profit guidance on Wednesday after reporting third-quarter revenue slightly above expectations, helped by a recovery of beer sales in Europe and China.
The world's third-largest brewer now expects operating profit to grow by between 10% and 12% this year, up from 8-11% previously.
"We're satisfied with the value and volume growth in the third quarter," chief executive Cees 't Hart said in a statement. "It is encouraging that many beer markets in Europe are recovering from the pandemic."
Sales in China continued a "positive trajectory", while beer markets in Laos, Vietnam, Malaysia and Singapore declined due to coronavirus lockdown measures, Carlsberg said.
The announcement comes after rival Heineken reported a steeper than expected decline in third-quarter beer sales earlier on Wednesday.
The Dutch brewer said that Asia-Pacific sales were down more than a third after COVID-19 restrictions cut volumes.
Carlsberg increased organic sales by 7% in the quarter, beating analyst expectations of 6%, helped by 13% growth in Asia.
Third-quarter sales rose 14% to 19.74 billion Danish crowns ($3.09 billion), compared with 19.31 billion forecast by analysts in a poll compiled by the company.
Shares in Carlsberg have risen 10% since the beginning of the year and were up 0.8% on the day at 1143 GMT.
The company said it would launch its fourth quarterly share buyback programme this year on Thursday amounting to 1.25 billion crowns.
News by Reuters edited by Donna Ahern, Checkout. For more Drinks stories click here. Click subscribe to sign up for the Checkout print edition.