Strong Asian Market Boosts Carlsberg Half-Year Sales
Wednesday, August 28th, 2019 | 1196 Views
Danish brewing company, Carlsberg has reported strong first-half results with a 17.7 percent increase in profit to DKK 5.17 billion ($768 million). Despite the 4.1 percent decline in organic beer volume sales, the profit increase was largely owing to the performance of premium beer sales in Asia.
In Asia, net revenue growth was 14.5 percent, driven by 8.5 percent volume growth and increased sales of premium brands. Operating profit growth was particularly strong at 35.5 percent. The company’s craft and speciality portfolio are also strong in Asia and Europe, with 17 percent growth rate.
Carlsberg is shifting their priorities for 2019 towards driving revenue growth, following success of their cost-cutting programme which included selling more of its pricier brands.
“We delivered a strong set of results for the first six months of 2019, with healthy top-line development, strong margin improvement and continued solid cash flow. We’re pleased that last week we were able to adjust our earnings outlook upwards due to the performance in the first half and a solid start to Q3, and despite tough comparables. The earnings upgrade is yet another proof point that the execution of our SAIL’22 priorities is driving sustainable, long-term value creation for the Group,” commented Cees ’t Hart, CEO of Carlsberg.