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Danish brewer Carlsberg (CARL-B.CO, 2836.KL, CBGA.SG, CBGB.DU, CBGB.F) has raised its forecast for full-year operating profit growth, despite facing weaker-than-expected sales in the second quarter. The company now anticipates organic operating profit growth in the range of 4% to 6%, an increase from its previous projection of 1% to 5%. This adjustment reflects Carlsberg’s confidence in overcoming recent market challenges, particularly those stemming from unfavorable weather conditions.
Resilient Performance in China Despite Economic Slowdown
Carlsberg, known for popular brands such as Kronenbourg 1664, Tuborg, and Somersby, reported that its business in China continues to perform well, outpacing the broader market. This success comes despite a noticeable slowdown in the quarter, attributed to heavy rainfalls in southern China and a dip in consumer sentiment. The company’s resilience in China underscores its strategic focus on key international markets, even as domestic challenges arise.
Second Quarter Sales Fall Short of Expectations Due to Weather
For the April to June period, Carlsberg reported sales of 21.64 billion Danish crowns ($3.14 billion), a modest increase from 21.38 billion crowns in the same period last year. However, this figure fell short of the 22.1 billion crowns anticipated by analysts in a poll conducted by the company. The brewer also experienced a 3% decline in total volumes during the quarter, largely due to poor weather in many of its markets in June. Despite these setbacks, Carlsberg’s ability to adjust its profit forecast suggests a strong underlying business capable of navigating external pressures.
