Latest news with #Aarup-Andersen
Yahoo
2 days ago
- Business
- Yahoo
Carlsberg gloomy on consumer environment but lifts low end of guidance
Carlsberg does not expect consumer environment to improve in the back half but has nonetheless lifted the lower end of its full-year sales growth guidance. In a statement alongside the Danish brewing giant's first half and second-quarter results yesterday (14 August), CEO Jacob Aarup-Andersen said: "We don't expect the consumer environment to improve over the remainder of the year. "Nevertheless, we're continuing our long-term investments in key brands and capabilities, including in areas such as digital, marketing and value management, to create an even stronger Carlsberg." For the half year period ended 30 June 2025, the 1664 Blanc maker saw reported revenue grow 18.2% to Dkr45.9bn ($7.1bn), which the company attributed to the acquisition of Britvic. On an organic basis, revenue declined 0.3%, driven by the company's loss of its UK production, distribution and marketing license for San Miguel to Budweiser in July. Operating profit was up 15.1% on a reported basis and grew 2.3% in organic terms, to Dkr7.2bn. Total volumes decreased 16% on a reported basis but declined 1.7% organically to 76.3 million hectolitres. In its second quarter, the business saw total organic revenue rise 0.6% to Dkr25.73bn, excluding the impact from San Miguel. Total organic volumes of both the beer and other beverages segments grew 0.2% in the three months, again excluding San Miguel, to 42.9 million hectolitres. In spite of the negative outlook for the remainder of the year, Carlsberg confirmed its intention to narrow its earning guidance for 2025. The business now expects to see 3% to 5% growth in organic operating profit, compared to a prior 1% to 5% forecast. 'Being able to narrow our earnings guidance towards the upper end of the range in a difficult trading environment reflects our relentless focus on commercial execution, as well as continued strong performance management and cost discipline", Aarup-Andersen added. In terms of markets, in its first-half Carlsberg saw volumes in Western Europe dip 1.7% organically but rise 44.8% on a reported basis to 30.8 million hectolitres. Revenue in the region was up 34.9% on a reported basis and down 0.8% organically at Dkr25.45bn. The company's Asia market saw total volumes decline 2.8% in the period on an organic basis and reported basis to 25 million hectolitres. Revenue in the region slipped 1.9% organically and 4.1% on a reported basis to Dkr11.2bn. In Asia in particular, the company saw an impact on beer volumes, which dropped 1.7% organically to 22 million hectolitres, driven by soft volumes in Cambodia and Laos. The group's 'other beverages' segment saw a 10.4% organic decline to 3 million hectolitres due to an impact on energy drinks in Cambodia. Carlsberg also said it faced "weak consumer sentiment" in China for its mainstream beer portfolio as well as "intensified competitive activities" in Vietnam, which had a negative effect on volumes in the country. Speaking to reporters yesterday on how volumes might look in the second half of the company's fiscal year, Aarup-Andersen said the business didn't anticipate seeing "any significant change versus the first half", but noted that it did "assume a slightly better volume development in the second half". He added: "If you look across the three regions, we've had a good start to Q3 in Western Europe, in Asia... but even around China, of course, it's a major factor, and we don't see a step change in China, but we do expect that Vietnam will be less bad in the second half than in the first half, and we also expect Laos to improve." "Carlsberg gloomy on consumer environment but lifts low end of guidance" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
CNBC
2 days ago
- Business
- CNBC
Carlsberg CEO notes changing beer habits amid cost pressures
Spending pressures are dividing beer drinking habits, further clouding the outlook for brewers already battling declining sales volumes. Drinkers are increasingly bypassing once-loved core beer brands and instead opting for premium or economy alternatives, Danish brewer Carlsberg said Thursday, as beermakers confront wider pressures on the drinks sector. "We do see a continued bifurcation in terms of preferences," CEO Aarup-Andersen told CNBC's "Squawk Box Europe" on Thursday. "People look either for the premium brand or the economy brand. So what will get squeezed a little bit in an environment like this is actually the core brands in the middle," he added. Beermakers have been battling several consecutive quarters of declining volume growth, as consumers have pushed back against higher prices and veered toward alternatives. Carlsberg, the world's third-largest brewer, on Thursday became the latest to report lower second-quarter volume growth. Organic volumes dipped 1.7% over the three-month period, including the recent loss of its San Miguel brand, even as demand for its premium and alcohol-free products grew. That comes after Budweiser-maker AB InBev, the world's largest brewer, last month posted a worse-than-feared 1.9% year-on-year decline in second-quarter volumes and Heineken's volumes dipped 0.4% over the period. "The global consumer is having a bit of a spending pause … so the volumes do not flow in the way they did a couple of years ago," Aarup-Andersen noted. AB InBev's CEO Michel Doukeris nevertheless said last month that the company's continued revenue and operating profit growth pointed to the "resilience of the beer category," and Heineken's CEO Dolf van den Brink cited resilience in its geographical footprint. Beermakers have been somewhat sheltered from recent pressures on the drinks industry, particularly a downturn in spirits consumption and ongoing U.S. tariff headwinds. Brewers, which typically rely on local production, are under less pressure to relocate their manufacturing stateside — even as they face higher aluminum levies on beer cans. Still, broader macroeconomic headwinds threaten to hurt drinking habits and wider consumer spending. Carlsberg's CEO said Thursday that the group's core brands — which include its namesake Danish brew as well as Tuborg and Kronenbourg — are being most hit by "a consumer that is holding back." He said he does not expect those economic headwinds to dissipate this year, but nevertheless noted a willingness among consumers to spend selectively on high-end treat products. "It's core beer that's going backwards while our growth categories are actually showing growth," he said. Meantime, the CEO added that at-home consumption is gaining more ground as ongoing hikes in the price of a pint are making boozing in bars and restaurants less palatable. "What we have been seeing over a number of quarters is that the on-trade, so bars and restaurants, are suffering right now," he said. "It's the off-trade — supermarkets and retail — that's winning at the expense of on-trade. It's not dramatic but it's been a sliding scale."
Bloomberg
06-06-2025
- Business
- Bloomberg
Carlsberg CEO: No-Alcohol Remains Highest Growing Segment
Carlsberg CEO, Jacob Aarup-Andersen joins Bloomberg's The Opening Trade to discuss the growth of the low and no-alcoholic drink market. He says there is as much growth of non-alcoholic beer across all generations, not just Gen Z. 'Moderation is a theme that's here to stay', Aarup-Andersen says. (Source: Bloomberg)
Time of India
03-05-2025
- Business
- Time of India
Carlsberg plans to add 2-3 breweries in India to grow market share: CEO Jacob Aarup-Andersen
Carlsberg, the world's third largest brewer, plans to open up to three new breweries in India to bolster its supply chain capabilities in this growing market, said chief executive Jacob Aarup-Andersen . The maker of the eponymous brand and Tuborg currently has seven breweries in India. It recently committed '350 crore for a new facility in Mysuru , Karnataka. Through these initiatives, Carlsberg would seek to further grow its Indian market share from the current 25 per cent . It had an 18 per cent share just about two years ago. "We are in the process of finalising a number of supply chain projects at the moment. You would also expect to see more greenfield projects come on stream in the coming years in India," Aarup-Andersen said on a call with investors. "So, we are not sitting on our hands, and we would expect that in the coming years, you will see two to three new brewery additions in India." At six million hectoliters per year, India accounts for about 5 per cent of Carlsberg Group's total volume. One hectolitre is equivalent to 100 litres. India-a warm, tropical country with promising demographics and increasing affluence-is one of the world's largest beer markets. United Breweries , majority owned by Heineken, currently controls half of the Indian beer market. Carlsberg entered the Indian market in 2007 through a joint venture with Nepal-based Khetan Group though it was embroiled in a commercial conflict with its partner for the past several years. Last fiscal, the Danish brewer bought out Khetan Group's stake to currently own 100 per cent of the Indian venture and said it will step up investments in India-both in terms of capital spending, and sales and marketing. "We feel confident that we have the broad capacity we need in terms of the supply we get from-the capacity we get from our co-packer partners across the states. But we have historically had quarters where we've seen rapid demand increase in certain states where we didn't have the co-packer capabilities. And, of course, that can happen going forward," noted Aarup-Andersen. For alcobev products, India, in particular, offers very attractive growth opportunities supported by favourable demographics, with an estimated 800 million people of legal drinking age and around 20 million people entering this cohort every year. While not everyone consumes alcohol, there are still an estimated 140 million people in the beer-drinking population. Growing urbanisation, increasing penchant for dining out, and a rising share of women beer drinkers is driving this market. However, India remains a complicated market for companies to run operations. Alcohol sales are restricted. There are only around 90,000 outlets across India with permission to sell alcohol, and rules are set by individual states, resulting in varied market and tax structures, including import and export duties between states. The marketing of alcohol is also heavily regulated. India is also traditionally a spirits market with high alcohol by volume (ABV) products accounting for around two-thirds of alcohol consumption. However, the market is experiencing increasing popularity of low-alcohol products-mainly beer. The beer market is largely driven by strong beers, with around 80 per cent of market volumes comprising beer with ABV between 5 per cent and 8 per cent . Carlsberg sells strong beer brands Carlsberg Elephant and Tuborg Strong .
Time of India
02-05-2025
- Business
- Time of India
Carlsberg plans to add 2-3 breweries in India to grow market share: CEO Jacob Aarup-Andersen
Carlsberg, the world's third largest brewer, plans to open up to three new breweries in India to bolster its supply chain capabilities in this growing market, said chief executive Jacob Aarup-Andersen . #Pahalgam Terrorist Attack Pakistan reopens Attari-Wagah border to allow stranded citizens in India to return Key Jammu & Kashmir reservoirs' flushing to begin soon Air India sees Pakistan airspace ban costing it $600 mn over 12 months The maker of the eponymous brand and Tuborg currently has seven breweries in India. It recently committed '350 crore for a new facility in Mysuru , Karnataka. Through these initiatives, Carlsberg would seek to further grow its Indian market share from the current 25%. It had an 18% share just about two years ago. "We are in the process of finalising a number of supply chain projects at the moment. You would also expect to see more greenfield projects come on stream in the coming years in India," Aarup-Andersen said on a call with investors. "So, we are not sitting on our hands, and we would expect that in the coming years, you will see two to three new brewery additions in India." At six million hectoliters per year, India accounts for about 5% of Carlsberg Group's total volume. One hectolitre is equivalent to 100 litres. India-a warm, tropical country with promising demographics and increasing affluence-is one of the world's largest beer markets. United Breweries , majority owned by Heineken, currently controls half of the Indian beer market. Carlsberg entered the Indian market in 2007 through a joint venture with Nepal-based Khetan Group though it was embroiled in a commercial conflict with its partner for the past several years. Last fiscal, the Danish brewer bought out Khetan Group's stake to currently own 100% of the Indian venture and said it will step up investments in India-both in terms of capital spending, and sales and marketing. "We feel confident that we have the broad capacity we need in terms of the supply we get from-the capacity we get from our co-packer partners across the states. But we have historically had quarters where we've seen rapid demand increase in certain states where we didn't have the co-packer capabilities. And, of course, that can happen going forward," noted Aarup-Andersen. For alcobev products, India, in particular, offers very attractive growth opportunities supported by favourable demographics, with an estimated 800 million people of legal drinking age and around 20 million people entering this cohort every year. While not everyone consumes alcohol, there are still an estimated 140 million people in the beer-drinking population. Growing urbanisation, increasing penchant for dining out, and a rising share of women beer drinkers is driving this market. However, India remains a complicated market for companies to run operations. Alcohol sales are restricted. There are only around 90,000 outlets across India with permission to sell alcohol, and rules are set by individual states, resulting in varied market and tax structures, including import and export duties between states. The marketing of alcohol is also heavily regulated. India is also traditionally a spirits market with high alcohol by volume (ABV) products accounting for around two-thirds of alcohol consumption. However, the market is experiencing increasing popularity of low-alcohol products-mainly beer. The beer market is largely driven by strong beers, with around 80% of market volumes comprising beer with ABV between 5% and 8%. Carlsberg sells strong beer brands Carlsberg Elephant and Tuborg Strong .
