Good Weather Helps Carlsberg Drive Q3 Revenue Growth Up 9%
The recent summer sunshine across Europe boosted Carlsberg’s sales in the third quarter, as the beer maker posted an organic revenue of 9% for the period.
Reported net revenue was DKK 17.6 billion (€2.36 billion), an increase of 7.4%, impacted by +0.7% from acquisitions and a currency effect of -2.3%.
Its international core beer brands delivered strong growth, with Tuborg volumes growing by 11%, boosted by China and India as well as licence volumes in Turkey.
The Carlsberg brand grew by 9%, reflecting positive growth momentum in most of its markets, especially markets such as India, China, Malaysia, Russia, and the UK.
In addition, its craft and speciality volumes grew by 29% and alcohol-free brews in Western Europe grew by 58%, positively impacted by the warm weather. The international brands Grimbergen and 1664 Blanc grew by 15% and 49% respectively.
“We delivered a strong third quarter with all regions performing very well," commented CEO Cees ’t Hart.
"Our craft and speciality portfolio and alcohol-free brews continued their good momentum, and in Asia Tuborg, Carlsberg and 1664 Blanc delivered strong growth rates. Results in the quarter were further boosted by the very good weather in Western Europe."
As a result of the strong quarter, the group increased its earnings outlook for the year, now expecting a 10-11% organic growth in revenue profit.
It also revised the impact on operating profit from foreign exchange translation, going from DK 425 million (€59.9 million) to DK 500 million (€67 million).
“We’re pleased that last week we were able to increase our full-year earnings expectations, and we feel confident that 2018 will show solid top-line growth, margin improvement and a healthy cash flow, whilst we have invested significant funds in our strategic priorities to drive the long-term growth of our business.”
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.