Carlsberg reports positive results in spite of ‘tough quarter’

Brewing giant Carlsberg’s Q3 2024 Trading Statement revealed that there was volume and revenue growth in the majority of markets, though China, France and the UK offset this trend.

Carlsberg Group CEO Jacob Aarup-Andersen said: “Q3 was a tough quarter, impacted by a weak consumer environment and weather. Nevertheless we delivered volume and revenue growth in the majority of our markets, and we saw good progress for our key long term strategic growth categories, including alcohol-free brews, Beyond Beer and soft drinks.”

According to the company, the alcohol-free portfolio saw an organic volume development of +6%, while for the ‘beyond beer’ category, which includes drinks including RTDs, that grew by +10%.

“We’re especially pleased with the continued strong performance of our key international premium brands, particularly Carlsberg, which stand out as a highlight,” added Aarup-Andersen.

The Carlsberg brand grew by +11%, with the Brooklyn brand up by +9%, and 1664 Blanc by +8%.

“This quarter was certainly somewhat challenging,” commented CFO Ulrica Fearn. “We delivered organic revenue growth of +1.3% for the quarter and +3% for the year to date. The quarterly revenue growth was a result of revenue per hectolitre growth of +2%, and this was partly offset by a slight volume decline of -0.2%. We delivered volume growth in the majority of our markets, with particularly strong growth in Central and Eastern Europe, India and the Nordics, however, this was offset by lower volumes in some other markets, including China, France and the UK.”

In the case of China, the group’s volume development in Q3 stood at -6%, while the market was down by an estimated 7%. Year-to-date, volumes in China were flat in a market down by an estimated 5%.

Organic development in Western Europe remained flat, though Carlsberg Group claimed that this was “offset by the inclusion of excise duties in the comparable, following last year’s termination of the Kronenbourg 1664 licensee agreement in the UK”, and that if this were excluded, revenue per hectolitre would have increased by +2%.

“In the light of the current environment we are maintaining our guidance for the year,” said Fearn.

The company’s earnings expectations for 2024 are of organic growth in operating profit before special items of 4 to 6%.

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