Carlsberg ups growth forecast following Britvic offer

Carlsberg has increased its earnings forecast for 2024 from 1%-4% organic operating profit growth to 4%-6%.

The Danish brewer adjusted its expectations upwards “due to continued solid business performance” in the year to date and “continued cost control” that compensated for the bad weather during the second quarter in several markets, as well as weak consumer sentiment in some Asian markets.

In the first half of the year, the drinks firm posted reported operating profit growth of 1% to DKK6,336m (£725m). Reported revenue increased by 2.6% to DKK38,766m (£4.437m).

However, Carlsberg also cautioned that financial expenses, excluding foreign exchange losses or gains, are expected to rise to around DKK1.2b/£140m (previously DKK1.1b).

The increase is due to the brewer’s split with Marston’s in July, where it purchased the remaining 40% stake of Carlsberg Marston’s, plus financing costs related to establishing bridge financing facilities for its recommended offer for soft drinks giant Britvic.

Chief executive Jacob Aarup-Andersen said: “It’s been an exciting year for Carlsberg with the launch of our refreshed strategy – Accelerate SAIL – and higher growth ambitions, the recommended offer for Britvic, and the signing of an agreement that will give us full control of our businesses in India and Nepal. These major events will support the long-term health of our business, our brands and delivery of our long-term growth ambitions.

“We continued to step up sales and marketing investments behind our key growth categories and saw above-average growth of premium, Beyond Beer and alcohol-free brews.”