Carlsberg Records Rise In Second-Quarter Sales
Danish brewer Carlsberg has recorded a rise in second-quarter sales and raised its full-year earnings guidance after recording second-quarter sales above expectations as beer volumes exceeded pre-COVID-19 pandemic levels.
Beer Volumes In China And Russia
The world's third-biggest brewer said that beer volumes in key markets China and Russia rose to "well above" 2019 levels.
Organic Growth In Overall Beer Volumes
It registered 2% organic growth in overall beer volumes in the first six months of the year compared with the same period in 2019.
Sales In Western Europe
Sales in western Europe were driven by hot weather in June, combined with the European soccer championship and the reopening of bars and restaurants after COVID-19-related lockdowns.
Carlsberg Chief Executive Statements
"Western European markets are reopening, but a reverse trend is going on in Asia, particularly in Vietnam, Laos and Malaysia," Carlsberg chief executive Cees 't Hart said on a conference call.
He also warned that while Carlsberg has hedged against rising commodity prices until the end of the year, "significantly higher" costs will hit the company next year, driven by rising prices for aluminium, barley, paper and oil.
Operating Profit Growth Expectation
Carlsberg said that it is now expecting operating profit to grow by between 8% and 11% this year, up from its previous guidance of 5% to 10% growth.
Shares in Carlsberg have risen 17% since the beginning of the year.
Q2 Sales Figures
Sales between April and June rose 17% to 18.69 billion Danish crowns ($2.94 billion), compared with a 17.97 billion crown forecast in a company-compiled poll of analysts.
Share Buyback Programme
Additionally, the company launched a one billion crown share buyback programme on Wednesday August 18.