Carlsberg expects moderate operating profit growth

In the UK, the business reported ’solid performance ahead of market’ with good growth for Poretti, Brooklyn and alcohol-free brews.

In its full year financial results for 2023, the group reported organic revenue growth 9.2%, with revenue growth of 4.7%, driven by all regions. 

The brand said that operating profit growth reflected strong revenue growth, partly offset by cost inflation and increased commercial investments.

Operating profit before special items was -3.2% during the period. 

Organic volume 

Although group organic volume dropped -0.5%, this improved in Asia +3.7%.

Meanwhile volumes in Western Europe fell -2.3% and Central & Eastern Europe -4.0%.

The group reported premium volume growth of 1%, with alcohol-free brews enjoying a +3% increase. 

Total volume growth of international brands were as follows; Tuborg +3%, Carlsberg 0%, 1664 Blanc +3%, Brooklyn +34% and Somersby -6%.

The business said that “deconsolidation of the Russian business” resulted in accumulated losses on currency translation and hedges for the period of 2004 to 2023 of DKK 41,504m and impairment of DKK 7,002m.

Due to cost pressures, the company said it would expect a more moderate increase in our total cost base for 2024, and  would offset the higher total costs in absolute terms through higher revenue and continued tight cost control.

Strategy refresh 

Its earnings expectations for 2024 include organic operating profit growth of 1-5%.

To meet increased long-term growth ambitions, the business will step up commercial investments in 2024, and intends to increase absolute sales and marketing investments, the latter by more than 10%.

CEO Jacob Aarup-Andersen said, “We delivered a solid set of results for 2023, which were achieved despite a challenging consumer environment, significant inflationary pressure and currency headwinds.

“We’re excited about our strategy refresh – Accelerate SAIL – and its increased focus on, and commitment to, growth. The outperformance of our premium portfolio and our results in key Asian markets in 2023 are an affirmation that we have a strong platform to expand from.

”Benefiting from the continued strong financial health of the business, we have the capacity to increase our investments in the Accelerate SAIL growth initiatives and deliver on our updated, higher ambitions for compounding top-line and earnings growth and sustainable long-term value creation.”