Latest news with #JacobAarup-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
The Star
3 days ago
- Business
- The Star
Carlsberg half-year profits miss expectations, warns of tough year
LONDON/COPENHAGEN: Carlsberg missed half-year profit and volume forecasts on Thursday and warned it did not expect the consumer environment to improve in the rest of 2025, sending the Danish brewer's shares down almost 7% in early trading. The latest report by the world's third-largest brewer - behind Anheuser-Busch InBev and Heineken - was received with similar pessimism to those of its rivals in recent weeks as investors sent shares declining. While Carlsberg, which makes Kronenbourg 1664, Tuborg and Somersby, raised the bottom end of its annual profit guidance, that did not offset slower-than-expected first-half operating profit growth of 2.3%, and a 1.7% decline in volumes. CEO Jacob Aarup-Andersen said on a media call that the brewer's performance was strong in a difficult year, and that it anticipated slightly better volume growth in the second half. Still, he wasn't optimistic on consumer spending, which was being reined in by price increases and uncertainty, adding: "There is no indication as we move into the second half that that's going to change." Big brewers have been battling reduced demand, the impact of U.S. tariffs and poor weather, and their weak performance or volume expectations have left investors fretting over growth prospects. Carlsberg's shares were down 5.8%, after earlier falling as much as 6.7%, its steepest decline since July 2024. Haider Anjum, analyst from Jyske Bank, said he was surprised by the share price reaction, given Carlsberg's relatively strong performance. But Laurence Whyatt, analyst at Barclays, said the market had been "punishing volume misses" like Carlsberg's, which was driven by a weaker-than-expected performance in Asia. OPTIMISM FADES As well as temporary challenges, brewers also face questions around longer-term shifts, such as some consumers cutting back on alcohol for health reasons. Altogether, these issues have dampened earlier optimism around the sector. Carlsberg had also pledged to deliver revenue growth of between 4% and 6% annually each year until 2027, but Aarup-Andersen told investors on a call that in a year like 2025, that may not be "fully realistic." While it narrowed its expectations for annual operating profit growth to 3% to 5%, compared with 1% to 5% before, analysts said they were already expecting 4%. ($1 = 6.3777 Danish crowns) - Reuters
Business Times
3 days ago
- Business
- Business Times
Carlsberg misses first-half forecasts, warns of difficult year
[LONDON] Carlsberg missed half-year profit and volume forecasts on Thursday (Aug 14), with the Danish brewer warning it does not expect any improvement in the consumer environment for the rest of 2025. The world's third-largest brewer behind Anheuser-Busch InBev and Heineken nevertheless raised its full-year profit guidance, breaking with those rivals who opted to keep their forecasts unchanged as US tariffs drive uncertainties. Volume growth or forecasts at all three brewers have disappointed in recent weeks as the sector battles with weak demand, tariff impacts and poor weather, leaving investors fretting over growth. Carlsberg, which makes Kronenbourg 1664, Tuborg and Somersby, said it had grown first-half organic operating profit by 2.3 per cent, while organic volumes slipped 1.7 per cent – putting it just behind analyst expectations on both measures. CEO Jacob Aarup-Andersen said the group had 'delivered solid results in a difficult half year'. 'We don't expect the consumer environment to improve over the remainder of the year,' he warned, adding Carlsberg could narrow its profit guidance thanks to its strong performance management and cost discipline. It now expects annual operating profit growth of between 3 per cent and 5 per cent organically, compared with between 1 per cent and 5 per cent before. Its half-year operating profit stood at 7.23 billion Danish crowns (S$1.44 billion), against analyst expectations for 7.35 billion crowns. REUTERS
RTÉ News
3 days ago
- Business
- RTÉ News
Carlsberg misses first-half forecasts, warns of difficult year
Carlsberg has today missed half-year profit and volume forecasts, with the Danish brewer warning it does not expect any improvement in the consumer environment for the rest of 2025. The world's third largest brewer behind Anheuser-Busch InBev and Heineken nevertheless raised its full-year profit guidance, breaking with those rivals who opted to keep their forecasts unchanged as US tariffs drive uncertainties. Volume growth or forecasts at all three brewers have disappointed in recent weeks as the sector battles with weak demand, tariff impacts and poor weather, leaving investors fretting over growth. Carlsberg, which makes Kronenbourg 1664, Tuborg and Somersby, said it had grown first-half organic operating profit by 2.3%, while organic volumes slipped 1.7% - putting it just behind analyst expectations on both measures. CEO Jacob Aarup-Andersen said the group had "delivered solid results in a difficult half year". "We don't expect the consumer environment to improve over the remainder of the year," he warned, adding Carlsberg could narrow its profit guidance thanks to its strong performance management and cost discipline. It now expects annual operating profit growth of between 3% and 5% organically, compared with between 1% and 5% before.
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)
