Carlsberg upgrades guidance following “strong” half-year results

Carlsberg has raised its full-year earnings guidance after reporting a “strong set of results” for the first half of the year, but has warned uncertainty remains.

The Danish brewer registered 17.7% sales growth – on a reported basis – in Q2, while sales grew by 9.9% to DKK 31.69 billion ($4.99 billion approx.) in Carlsberg’s first half. Meanwhile, the company has recorded volume growth of 11.9% for the first six months of the year.

In light of its results, Carlsberg has raised its earnings guidance for the second time – and now expects organic growth in operating profit of between 8% and 11%, compared with its previous forecast of 5-10% growth.

During the first half, the brewer said that the impact of the pandemic on its business varied by market. While Carlsberg’s volumes were “well above” 2019 levels in markets such as China, Vietnam and Russia, other markets were challenged by renewed lockdowns and restrictions.

In Western Europe, total volumes grew organically by 1.1% in the first half, with volumes in June boosted by the reopening of pubs and bars and the European football championship, following a “very challenging Q1”.

Carlsberg said that its Chinese business performed very well throughout the first half, while all other Asian markets were challenged by government-imposed restrictions, but total volumes still grew organically year-over-year by 19.7% for its Asian business, against a low benchmark.

Meanwhile, the company’s Central & Eastern Europe unit delivered a “solid performance” with total organic volume growth of 8.7%.

Commenting on the first half, Carlsberg CEO Cees ’t Hart said that the company delivered a “strong set of results” but that pandemic-related uncertainty persists.

He said: “Although we see a gradual return to a more normal environment in markets across Europe, other markets, particularly in Asia, remain subject to severe restrictions due to new waves of the infection”.

“While the uncertainty about the remainder of the year continues, we’re satisfied with the strength of the H1 results and the good start to Q3, enabling us to upgrade the earnings guidance for the year and launch the third quarterly share buy-back programme.”