Sales growth remains for Carlsberg in 'tough quarter' - results data

Sales in three months to the end of September increase 1.3% to DKK20.48bn (US$2.97bn)
Quarterly volumes flat at -0.2%
Year-to-date top line up 3% at DKK59.24bn thanks to Q1’s +6.4% performance

Carlsberg has booked its slowest quarter for sales growth so far this year, admitting the three months had been “tough” for the group.

In a year that started well for the brewer, when the first quarter’s sales came in up by almost 6.5%, the second quarter’s +1.9% showing has been followed this week by a 1.3% lift in sales from the three months to the end of September. For the year to date, sales for Carlsberg sit at +3%, slightly ahead of Anheuser-Busch InBev’s 2.5% increase in the nine months but behind Heineken’s +5.1%.

The company’s namesake flagship brand, which is positioned in the premium segment in some markets but not all, delivered a low double-digit (11%) volumes lift in the three-month period, thanks to its performances in China, India, Kazakhstan and Ukraine – all of which are premium markets for the beer. Elsewhere at the higher end price-wise, the Brooklyn brand did well in the mature markets of Denmark, Sweden and the UK, resulting in a 9% increase in its volumes overall.

On the downside, volumes for the premium portfolio more widely struggled in China, France and the UK, although ‘alcohol-free brews’ were up in volumes terms by 6% in Q3.

Regionally, ‘Central & Eastern Europe and India’ was up 9.8% by value thanks partly to the effect of price increases, as Asia declined 3.3% in sales value due to flat volumes in China, “a market down an estimated 5%”. Closer to home for the Copenhagen-headquartered group, Western Europe by value was flat on Q3 2023.

“It was a tough quarter, impacted by a challenging consumer environment and weather,” said CEO Jacob Aarup-Andersen. “Nevertheless, we delivered volume and revenue growth in the majority of our markets, although lower volumes in China, France and the UK impacted overall group performance.

“We’re pleased with the development of our key long-term strategic growth categories, including alcohol-free brews, ‘Beyond Beer’ and soft drinks.”

Carlsberg also reiterated its expectation today that the acquisition of Britvic, announced in July, should complete early next year.