Carlsberg said on Friday July 10 that it expects a smaller than forecast drop in first-half operating profit as its key Chinese market rebounded strongly during the second quarter, sending its shares up 5%.
The world's third biggest brewer after Anheuser Busch InBev and Heineken said that it expects a decline in operating profit of 9% in the first six months of the year, compared to analysts' consensus forecast for a 26% fall, according to a Jeffries note to clients.
"Although government lockdowns are gradually being lifted, the sales development across our regions in the coming months continues to be volatile and uncertain, not least during the important summer months," it said, keeping its full-year guidance suspended.
Shares in Carlsberg are up 40% since a trough in mid-March, and were trading 4.8% higher at 0819 GMT on Friday July 10.
"Carlsberg is navigating the crisis well," Jefferies analysts said in the note. "Beyond 2020 and the easy comparison in 2021, which should be a summer of sport, Carlsberg remains an attractive investment proposition."
In a market update ahead of full results due on August 13, the company said second quarter sales fell 15%, with volumes down 8%.
However, profits in China, its biggest market, improved in the second quarter.
"Our Chinese business rebounded strongly in the second quarter," Carlsberg said in a statement.
Western Europe had a very difficult start to the quarter, but saw "improved performance" towards the end of the period as bars and restaurants reopened, and due to warm weather in June, the brewer said.
The price/mix, which indicates whether the company sold more or less of its expensive beer, continued to be negatively impacted across markets, Carlsberg said.