Denmark: Carlsberg reports strong earnings growth despite lower organic volume sales

Like its rivals AB InBev and Heineken, the world’s third largest brewer by volume, Danish Carlsberg Group, also reported strong earnings growth and cash flow for the first half-year 2017. While organic volume sales turned into negative with -2%, net revenue grew by 2% to DKK 31.8bn ($5.0bn), operating profit grew by 15% and reported growth was +20% to DKK 4.1bn ($650m), supported by a DKK 200m ($30m) positive currency impact.

The group also reported an increase of  +23% in net profit to DKK 2.3bn ($360m) and a rise of +63% of the adjusted net profit to DKK 2.3bn ($362m). The free cash flow could by improved by +12% to DKK 5.9bn ($930m) despite last year being impacted by proceeds from disposals. The free operating cash flow even increased by 37%.

Commenting the financial statement as at 30 June 2017, CEO Cees ’t Hart was quoted as saying: “With 4% organic net revenue growth, we delivered a solid start to 2017, in the seasonally small first quarter. The execution of Funding the Journey is progressing well and we’re on track to deliver on our 2017 commitments. We’re maintaining our full-year outlook.”

Additionally he said: “Our strong financial results enable us to accelerate our investments in the SAIL’22 priorities to drive sustainable long-term growth of the Carlsberg Group. The growth of Tuborg in Asia, the expansion of Grimbergen and the further development of our fruitful cooperation with Brooklyn serve as excellent examples of SAIL’22 at this point in time.”

SAIL’22 is the strategy of Carlsberg, which was launched in March 2016 with the aim to strengthen the company’s core business, position Carlsberg for identified growth opportunities and deliver enhanced value for shareholders.

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