Asia and Eastern Europe are helping Carlsberg through the crisis. The company released today its 1st quarter results which show a clear upwards trend after last year’s depressed results.
While Total organic volume development in Central & Eastern Europe increased by +8.9%. and Asia by +29.7% business in Western Europe was down -5.8%,. This summed up to an overall total organic volume growth of 11.5% (reported growth: 12.8%).
Sales of the Carlsberg and Grimbergen brands decreased by -4% and -17% repectively, reflecting the high proportion of draught beer of these brands. In contrast, Tuborg (+26%), 1664 Blanc (+33%), Somersby Cider (+31%) and alcohol-free brews (+24%) developed positively.
In light of the good start to the year and despite a high uncertainty concerning the development in the next months, Carlsberg raised the bottom end of the range in its earnings expectations for 2021to 5-10% (previously 3-10%).
CEO Cees ’t Hart says: “The Group had a strong start to the year in Asia and Central & Eastern Europe, while Western Europe was significantly impacted by the extensive lockdowns and restrictions across the region. With COVID-19 continuing to be a challenge in many of our markets, our geographical exposure showed its strength, as strong volume growth in several markets across all three regions more than offset challenging circumstances in other markets.
“Although the uncertainty as to how the pandemic will evolve in the coming quarters remains high, we’re pleased that we can raise the bottom end of our earnings guidance and that we’re today launching the second quarterly share buy-back programme.”