Carlsberg Group Upgrades 2019 Earnings Expectations
Carlsberg Group has adjusted its 2019 earnings expectations upwards due to solid earnings performances in Western Europe and China, which combined more than offset weakness in Russia during the brewer’s third quarter. Carlsberg Group now expects organic growth in operating profit of around 10% (previously high-single-digit percentage growth) for the full year.
Cees ’t Hart, chief executive of Carlsberg Group, says: “We’re pleased that we’ve been able to deliver solid revenue growth for the quarter despite tough comparables from last year. In particular the Asia region continued its very good performance. The top line in Western Europe was solid in spite of challenging comparables from the very warm and dry summer last year, while we had difficult comparables in Russia and faced challenges that negatively impacted our market share year-over-year.
“Our earnings upgrade is another proof point of the execution of SAIL’22 and a consequence of our improved geographical footprint, as solid earnings performance in China and Western Europe more than offset the challenges in Russia.”
During the first nine months of 2019, Carlsberg Group completed a number of structural transactions including the disposal of the former brewery site in Trondheim in Norway for NOK729 million; the acquisition of the remaining 1.2% of Carlsberg Ukraine, giving the group 100% ownership; and an agreement to acquire the remaining 25% of Cambrew in Cambodia, extending ownership to 100%.
