Sales rise across the board for Carlsberg as growth rates decelerate - results data

Third-quarter sales rise 5.8%, totalling DKK20.29bn [US$2.88bn]
Year to date – to end of September – up 9.2% at DKK58.08bn

Carlsberg has posted a mid-single-digit lift in sales from the most recent quarter, the first with new CEO Jacob Aarup-Andersen at the helm.

The near-6% top-line increase in the three months to the end of September was Carlsberg’s lowest quarterly growth rate in the year so far. For the first half of 2023, sales were up 11.2%, resulting in a +9.2% performance over the first nine months.

For the quarter, all three reporting regions were up on the corresponding period a year earlier, led by 'Western Europe' at +7%. A mixed picture in 'Asia', where China and Vietnam were flagged as "declining markets", resulted in a 3.7% sales lift, while 'Central & Eastern Europe' was the median at +6.3%. Volumes declined in both the former and latter, as Asia inched up 1.5% thanks in part to "strong growth" for brand Carlsberg in India.

Staying with brands, the namesake lager fell back by 4% in total sales by value, with its 'international premium' stablemate Tuborg climbing 3%. Where Carlsberg is positioned as a premium beer, in the likes of China, India and Vietnam, volumes were up, offset by declines in those countries hosting the brand in the 'mainstream', such as Denmark and the UK.

The brewer's alcohol-free portfolio struggled in Western Europe in the quarter, although volumes were up 6% in total, thanks to export and licence markets in the Middle East.

"The trading environment in Europe remains uncertain because of weak consumer sentiment," the group said today. "While Q4 comparables for China are favourable because of the extended COVID-related lockdowns in Q4 2022, the weak macro environment in South-East Asia is likely to continue to impact beer markets negatively.

"Nevertheless, compared with our previous expectation, we have decided to increase our commercial
investments in the remainder of the year by an additional around DKK 200m to support our key
growth priorities."

The company's share price has been on a downward trend since around mid-May at the same time as its attempts to exit Russia have attracted the attention of the country's authorities. Earlier this month, Carlsberg admitted it could see "no path to a negotiated solution" following July's forced transfer of the Baltika Breweries division to the Russian Federal Agency for State Property Management.

Earlier today, Aarup-Andersen spoke to CNBC International about the quarterly results.