Carslberg raises profits forecast despite increased costs

The upgraded guidance shows consumers are still drinking beer despite higher prices now that bars and restaurants have re-opened after pandemic lockdowns.

Carlsberg has raised its 2022 profits forecast after better beer sales in Europe and Asia outweighed higher input costs.

The Danish brewer said it expects “high single-digit-percentage organic growth” in 2022 operating profit, according to a statement. Carlsberg, which also makes the Tuborg brand, had previously forecast between a 5% decline and 2% growth.

The upgraded guidance shows consumers are still drinking beer despite higher prices now that bars and restaurants have re-opened after pandemic lockdowns.

Carlsberg’s units have “delivered better-than-expected business performance, particularly as a consequence of strong on-trade recovery in our European markets and strong results in many Asian markets”, the company said. 

“This has more than offset the increasing commodity and energy cost pressure,” the brewer said. Carlsberg’s improved forecast “exceeds market expectations in our view and should be well received”, Jefferies analysts including Edward Mundy said in a research report.

The shares rose as much as 3.4% following the announcement and ended the day 1.5% higher in Copenhagen trade. The company, which put its Russian business up for sale earlier this year, said it has now resumed operations at all three facilities in Ukraine. 

Bloomberg