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Drinks

Carlsberg Expects Operating Profit Growth To Slow This Year

Brewer Carlsberg has said that it expects organic growth in operating profit to fall short of last year's levels, after the Danish firm posted fourth-quarter sales above expectations.

Carlsberg said organic operating profit is expected to grow by 0% to 7% in 2022, down from 12.5% growth last year, citing higher costs and continued coronavirus restrictions.

The group has also pledged to step up its sustainability efforts.

The world's third-biggest brewer said sales in the fourth quarter reached DKK 15.2 billion (€2.04 billion), against DKK 14.7 billion (€1.98 billion) estimated by analysts in a company poll.

Full-Year Performance

Organic revenue growth for the full year was up 10.0%, while reported revenue growth rose 13.8% to DKK 66.6 billion (€8.95 billion).

Its core Carlsberg brand reported organic volume growth of 5% for the year, while Tuborg volumes were up 17%, 1664 Blanc was up 24%, Grimbergen was down 3% and Somersby rose 10%. Volumes in its craft and specialty beer arm were up 15%, with alcohol-free brews rising 17%.

Results Ahead Of 2019

“We’re very satisfied with the croup’s 2021 performance," commented CEO Cees ’t Hart. "Although our business was significantly impacted by COVID-19, we delivered strong top- and bottom-line growth and free cash flow. Our results in 2021 are well above the pre-pandemic levels of 2019."

’t Hart added that Carlsberg's financial situation is "very strong" and that the group's supervisory board has recommended an increase in dividends, as well as a new share buy-back programme.

"The significantly higher input costs and continued impact from COVID-19 will pose challenges in 2022, but we’re well prepared," he added.

Read More: Sustainability 2022 – Simon Boas Hoffmeyer, Senior Sustainability Director, Carlsberg Group

News by Reuters, edited by ESM. For more Drinks news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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