Carlsberg said on Wednesday that its full-year organic operating profit before special items rose 5%, reaching 13.99 billion Danish crowns, slightly above the company-compiled analyst consensus of 13.82 billion crowns. The result was attributed to a combination of tighter cost control and stronger-than-expected contributions from the recent acquisition of soft drinks maker Britvic.
The Danish brewer, which owns brands such as Kronenbourg 1664, Tuborg and Somersby, has expanded the share of soft drinks in its portfolio to 30% of volumes following the completion of the Britvic deal last year. Management said that the move helped insulate earnings as global beer demand remained weak in parts of its footprint.
Carlsberg has implemented spending restraint across several operational areas - including travel, consultancy fees and headcount - as part of efforts to protect profitability while navigating a range of external headwinds. Company management cited pressures from muted consumer demand, the impact of U.S. tariffs and the war in Ukraine as factors the group continues to manage.
CEO Jacob Aarup-Andersen also highlighted the impact of recent strategic moves and market momentum, noting the takeover of a soft drinks business in Central Asia and faster growth in India as additional contributors to the group's performance. "On the back of this, supported by tight cost focus and strong performance management processes, we achieved solid earnings growth," he said.
Looking ahead, Carlsberg projected profit growth in its current financial year in a range of 2% to 6%, a guidance level that aligns with expectations from analysts at Jefferies and Barclays. The company reported the operating profit figure and guidance using Danish crowns, with the exchange rate reported as $1 = 6.3110 Danish crowns.
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