Carlsberg lifts profit guidance on strong Chinese sales

COPENHAGEN (April 27): Danish brewer Carlsberg beat first-quarter sales forecasts on Thursday (April 27) and raised the lower end of its full-year profit guidance range following strong beer sales in China at the beginning of the year.

The world's third-biggest brewer said it now expected organic operating profit growth this year of between minus 2% and plus 5%, versus a range of minus 5% to plus 5% previously.

"What has changed since the beginning of the year, when we were uncertain about China, is that the situation there has improved significantly because of a good start of the year and very good throughput during Chinese New Year," chief executive Cees 't Hart said.

"We are optimistic for the coming quarters," he said.

The company said revenue per litre sold globally increased by 12%, indicating consumers bought more expensive beers as they returned to bars and restaurants following pandemic-related lockdowns.

"The first quarter of the year showed a strong improvement in revenue per hectolitre, covering the significant increase in our cost base," Hart said.

Brewers have raised prices in response to rising energy and raw material costs.

Still, some uncertainty remains over how consumers will react to higher prices and continued high inflation, particularly in Europe, the company said.

Sales totalled 16.4 billion Danish crowns (RM10.7 billion) in the first three months of the year, compared with 15.9 billion crowns forecast by analysts in a company poll.

Carlsberg shares were down 0.59% at 0723 GMT.