Carlsberg sold more of its premium beer brands and saw price increases across all its main markets during the first quarter, it was reported today.
Its total volume sales were up 2.1% in the period, mostly driven by Asian markets.
Holding Back
The chief executive Jacob Aarup-Andersen said that despite this, beer drinkers in China continued to hold back.
The brewer reported first quarter sales slightly above expectations as it said that sales of its premium brands grew 8% in the period.
While its market share grew in China and sales volumes increased by 5%, the overall beer market in the country remained flat as trading conditions in the region did not worsen, but did not improve either.
Consumer spending in the region has remained subdued, according to Aarup-Andersen.
“To be very direct, (Chinese consumers) are not buying more beer,” he said.
He added that Carlsberg increased its overall market share but industry volumes remained flat.
The number of people who travelled for the Lunar New Year reached record highs, though spending per person remained below pre-pandemic levels.
‘A Solid Start’
Referring to Carlsberg’s main markets in Europe and Asia, Aarup-Andersen said, “We’ve had a solid start to the year with volume and revenue growth in all three regions.
“We’re particularly satisfied with the growth of our premium portfolio and the volume and revenue growth in Asia, both of which are important strategic growth drivers for the group.”
Overall sales for the Danish brewer rose 4.4% to 17.13 billion Danish Crowns, above the 17 billion forecast by analysts in a poll by the company.
On Tuesday, Carlsberg launched a new share buyback programme of 1 billion crowns that will run until 9 August.
The company still expects organic operating profit this year at somewhere between 1% and 5%.
Shares in Carlsberg are up 11% this year but remain well below peaks before the Russian invasion of Ukraine in February 2022.
That year, the company took a $1.4 billion write down on its Russian business.
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