Carlsberg warns rising costs may hit beer sales

The world's third-largest brewer says it expects organic growth in operating profit this year to fall short of last year's level.

Carlsberg plans to raise beer prices to offset rising raw material costs, potentially hitting beer sales this year.

The world's third-largest brewer reported better-than-forecast fourth-quarter sales but said it expects organic growth in operating profit this year to fall short of last year's level.

"The significantly higher input costs and continued impact from Covid-19 will pose challenges in 2022," the Danish brewer’s chief executive Cees 't Hart said.

Carlsberg expects organic operating profit to increase 0% to 7% in 2022, compared with 12.5% last year.

"We're looking into a different situation this year, and therefore we have a relatively broad range on our financial guidance," the CEO said.

The company had said on Thursday that it would look for growth beyond its core beer market over the next five years to focus on categories such as cider, seltzers and alcohol-free beer, as well as premium brands such as 1665 Blanc and Grimbergen, which it says generate higher profit margins.

Sales in the fourth quarter reached 15.2bn Danish crowns (€2bn), against 14.7bn crowns estimated by analysts.

Carlsberg said it would propose a dividend of 24 crowns per share, or 3.4bn crowns in total, up 9% year-on-year.

• Reuters