World: Carlsberg revises upward annual profit outlook

Danish brewer Carlsberg revised upwards its annual profit growth outlook on October 28, saying it now expects organic operating profit to rise by around 10% versus a previous forecast for a “high single-digit” percentage increase, Reuters reported.

The world’s third biggest brewer cited solid earnings in its major markets Western Europe and China, which it said more than offset weakness in Russia, its second largest market.

“We are very pleased to be able to deliver a second upgrade this year due to solid earnings performance in Western Europe and China,” Carlsberg’s chief executive Cees ‘T Hart said in a statement.

In August, Carlsberg had increased its profit expectations for 2019 after strong first-half sales and an improvement in operating margins.

The latest upgrade to the group’s profit guidance contrasts with profit warnings by rivals Anheuser-Busch InBev and Heineken last week following slow sales in their main markets.

“Investment in the brand and its premiumisation drive has more traction in Carlsberg than some of its rivals,” Handelsbanken analyst Frans Hoyer told Reuters.

Carlsberg is due to publish a trading statement for its third quarter on October 31.

Carlsberg shares jumped 3.7% immediately after the announcement, and traded up 1.7% at GMT 1119.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .