Carlsberg revenues rise on the back of price hikes and premium sales

Carlsberg said that although inflationary pressures have eased, it continues to experience a “more moderate increase” in its total cost base leaving the door open to potential future price hikes.

Price increases across all markets through the start of the year bolstered revenues at Danish drinks company Carlsberg as it forecasts solid profit growth. 

During the first three months of the year, Carlsberg’s revenues grew by 4.4% to 17.1bn Danish kroner (€2.29bn) with the company expecting operating profit growth this year of between 1% and 5%.

Chief executive of Carlsberg Jacob Aarup-Andersen said the company has had a “solid start” to the year highlighting in particular the 8% increase in its premium brands sales. 

The company’s total volumes sold increased by 2.1% between January and March which was driven by Asian markets. Its overall alcohol-free offerings grew by 2% due in part to double-digit growth in central and eastern Europe.

While the company grew its market share in China, with a 5% increase in volume sales, the overall beer market in the country remained flat.

The company said that although inflationary pressures have eased across most markets, it continues to see a “more moderate increase” in its total cost base leaving the door open to potential future price hikes.

These results come as Heineken saw their revenues climb to €8.2bn during the first three months of the year as it also benefited from price increases. On average, the Dutch company's prices increased 6% during that period with Heineken claiming that this was in line with inflation.

Prior to the latest results, Heineken had already announced a price increase of 6c per pint from June 4 claiming it was due to rising underlying costs. Heineken had previously hiked prices in December 2022 by 17c per pint.

The 6c increase is added to the wholesale price of Heineken’s products which does not include the additional Vat and excise duty that has to be paid when it is served in a pub. This means the actual price increase on customers will likely be much higher.

In March, Guinness-maker Diageo announced its third price hike in 18 months increasing the cost of a pint by 6c. The company cited rising input costs across all of its operations.

Additional reporting Reuters