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Carlsberg enjoys 'strong' H1 results amid Britvic, Marston’s deals
The brewer saw organic revenue growth across all regions, including a 1.3% rise in Western Europe. This is despite organic volumes declining by 1.7% in the region.
At a group level organic volumes rose 1.4% during H1, with the Carlsberg Danish Pilsner brand experiencing a 12% increase. Tuborg, 1664 Blanc and Brooklyn volumes were up 8%, 4% and 4% respectively.
Meanwhile, Carlsberg saw organic operating profit growth of 4.7% year-on-year and has subsequently adjusted its earnings expectations for 2024 to 4-6% growth (previously 1-5% growth).
The announcement comes not long after Carlsberg announced that its £3.3bn offer for UK soft drinks manufacturer Britvic had been accepted by the firm’s board.
Britvic shareholders are set to vote on the deal in a meeting planned for 27 August. If the terms are agreed to, Carlsberg intends to create a single integrated beverage company in the UK called Carlsberg Britvic.
Alongside this agreement, the group confirmed the acquisition of Marston’s 40% stake in Carlsberg Marston’s Brewing Company for £206m. This transaction was completed on 31 July.
‘Exciting year for Carlsberg’
Reflecting on a busy start to the year, CEO Jacob Aarup-Andersen was positive in his outlook for the future.
“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,” Aarup-Andersen said.
“These major events will support the long-term health of our business, our brands and delivery of our long-term growth ambitions.
Commenting on the group’s performance, he added: “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.
“Our performance management remains strong, and as a result of continued solid execution and good cost control, we’re increasing our earnings expectations for the year despite volumes in Q2 being challenged by bad weather and weak consumer sentiment in some Asian markets.”
In other news, Mars has reached a deal to acquire snack brand Kellanova for $35.9bn after weeks of speculation.
