Solid organic operating profit growth and increased earnings expectations

Unless otherwise stated, comments below refer to H1 performance.

CONTINUED VOLUME GROWTH SUPPORTED BY THE PREMIUM PORTFOLIO DESPITE BAD WEATHER AND WEAK CONSUMER SENTIMENT

Organic volume growth 1.4%

• Organic volume development in Western Europe -1.7%, Asia +1.9% and Central & Eastern Europe and India (CEEI) +4.5%.
• Total premium beer category +4%, Beyond Beer +4%, alcohol-free brews +6%. 
• International brand volume growth: Tuborg +8%, Carlsberg +12%, 1664 Blanc +4% and Brooklyn +4%.

REVENUE GROWTH IN ALL REGIONS

Organic revenue growth 3.9%

• Revenue/hl +2%, with positive contribution from all regions.
• Organic revenue growth in Western Europe +1.3%, Asia +4.7% and CEEI +8.8%.
• Reported revenue growth of 2.6% to DKK 38,766m, impacted by currencies.

SOLID ORGANIC OPERATING PROFIT GROWTH

Organic operating profit growth 4.7%

• Operating profit growth driven by solid gross profit improvement, partly offset by an increase in marketing investments of almost 20%.
• Reported operating profit growth of 1.0% to DKK 6,336m.
• Reported net profit for continuing operations of DKK 3,737m (-4.2%), impacted by higher net financials.
• Adjusted net profit for continuing operations of DKK 3,869m (-3.4%).
• Adjusted earnings per share for continuing operations of DKK 28.6 (-2%).
• Free operating cash flow of DKK 3,613m.

DRIVING SHAREHOLDER VALUE

Total share buy-back and dividend payment of DKK 5.5bn

• NIBD/EBITDA 1.65x. 
• ROIC down 70bp to 14.5%; excluding goodwill down 360bp to 37.6%, impacted by currencies.
• Share buy-back terminated on 8 July due to the Group’s recommended offer to acquire Britvic plc and the expected subsequent increase in financial leverage.

SUBSEQUENT EVENTS

• On 8 July, we announced the recommended offer to acquire Britvic plc. 
• On 8 July, we announced the acquisition of Marston’s 40% stake in Carlsberg Marston’s Limited. The transaction was completed on 31 July.
• On 2 August, we announced the signing of an agreement to acquire the remaining 33.33% of Carlsberg South Asia Pte Ltd (the holding company for Carlsberg India and the business in Nepal).

2024 EARNINGS EXPECTATIONS

Based on the solid business performance year to date, we are adjusting our earnings expectations for 2024:

• Organic growth in operating profit of +4-6% (previously 1-5%).
• Based today’s spot rates, we assume a translation impact on operating profit of around DKK -300 for 2024 (previously DKK -250m).

CEO Jacob Aarup-Andersen: “It’s been an exciting year for Carlsberg with the launch of our refreshed strategy – Accelerate SAIL – and higher growth ambitions, the recommended offer for Britvic, and the signing of an agreement that will give us full control of our businesses in India and Nepal. These major events will support the long-term health of our business, our brands and delivery of our long-term growth ambitions.

“We continued to step up sales and marketing investments behind our key growth categories and saw above-average growth of premium, Beyond Beer and alcohol-free brews.

“Our performance management remains strong, and as a result of continued solid execution and good cost control, we’re increasing our earnings expectations for the year despite volumes in Q2 being challenged by bad weather and weak consumer sentiment in some Asian markets.”

Carlsberg will present the results at a conference call tomorrow, 14 August, at 9.30 a.m. CET. Dial-in information and a slide deck will be available on www.carlsberggroup.com

Contacts

Investor Relations:  
Peter Kondrup +45 2219 1221      
Iben Steiness +45 2088 1232

Media Relations:   
Kenni Leth +45 5171 4368  

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