Carlsberg Raises Full-Year Profit Outlook

Carlsberg A/S has raised its full-year organic operating profit growth forecast to 4-6%, up from 1-5%, despite reporting weaker-than-expected sales in Q2 due to adverse weather and sluggish consumer demand. The brewer's sales for the April to June period reached DKK 21.64 billion, slightly up from DKK 21.38 billion a year earlier but below the DKK 22.1 billion analysts had anticipated. Analysts noted that sales missed consensus expectations, with a 1.4% rise in organic volumes failing to meet forecasts, particularly in Western Europe. CEO Jacob Aarup-Andersen highlighted that good cost control and increased marketing investments are pivotal in navigating market challenges. Carlsberg's acquisition of Britvic for £3.3 billion is positioned as a strategic move to diversify its product offerings in response to shifting consumer preferences towards non-alcoholic beverages. The company's strategy focuses on enhancing its premium portfolio while adapting to changing market dynamics, including inflationary pressures and consumer spending limits.