Growth rate slackens for Carlsberg in second quarter - results data

Three-month sales to end of June increase 1.9% to DKK21.64bn (US$3.17bn)
Q1’s 6.4% sales rise pushes top-line up by 3.9% for the half year, to DKK38.77bn
Beer volumes rise 1.9% in H1 and by 1.4% in Q2

Carlsberg has seen its quarterly sales growth rate dip behind its two main brewing rivals in the three months to the end of June.

Just over three months after booking a 6.4% lift in Q1, a performance that positioned the group in between Heineken (+9.4%) and Anheuser-Busch InBev (+2.6%), the Denmark-headquartered company has reported a 1.9% sales rise in the second quarter of 2024. Carlsberg’s Q2 top-line came in below Heineken’s +3.4% and AB InBev’s +2.7% from the same period.

For the first half of 2024, the brewer’s sales increased by almost 4% on the corresponding period in 2023, ahead of AB InBev but behind Heineken.

In commentary that considered the half-year as a whole, Carlsberg noted a 12% volumes rise for its namesake lager brand. Where the beer is positioned as a premium proposition – predominantly in developing markets – its half-year volumes leapt by 24% in H1. Elsewhere in the portfolio, Tuborg climbed 8% in volumes terms while 1664 Blanc and Brooklyn both grew by 4%.

On the alcohol-free side, a combined volumes lift of 6% was driven by double-digit increases for brand Carlsberg and Tuborg’s extensions, with “solid growth” coming from the ‘Western Europe’ area.

While all three reporting regions were up in sales value on the same six-month period last year (‘Western Europe’ +1.3%, ‘Asia’ +4.7% and ‘CEEI’ +8.8%), poor weather in Western Europe towards the end of the half resulted in the region’s Q2 sales slipping by just over 1%. In ‘Asia’, meanwhile, the group highlighted ‘weak consumer sentiment” in China as its outperformance in the country’s beer market started to decelerate as the six months progressed.

Finally, in the redrawn CEEI region, a softer second quarter last year, when bad weather hit south-eastern Europe over the summer, was countered by ‘dry days’ in India this year as the country held its general election. The mixed picture didn’t stop the region from performing the strongest of the trio, however.

“It’s been an exciting year for Carlsberg with the launch of our refreshed strategy … 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,” said CEO Jacob Aarup-Andersen. “These major events will support the long-term health of our … brands and delivery of our long-term growth ambitions.”

Also in the results announcement, Bob Kunze-Concewitz, who stepped down as Campari Group CEO after 16 years in April, now sits on Carlsberg’s supervisory board as an independent director.