Carlsberg Lifts Guidance as 3Q Revenue Beat Expectations

By Dominic Chopping

Carlsberg AS on Wednesday raised its earnings guidance for 2021 after posting third-quarter revenue growth that beat expectations.

The Copenhagen-based brewer, which was due to release earnings Thursday, said the Covid-19 pandemic continues to impact many of its markets with market volatility and uncertainty remaining high. However, in light of better-than-expected results across its regions in the third quarter and the start of the fourth quarter it has upgraded guidance.

Carlsberg now expects 2021 organic growth in operating profit of between 10% and 12%, from 8%-11% previously, while the negative currency impact on operating profit is seen around DKK100 million, from a negative impact of DKK150 previously.

The reported effective tax rate is expected to be around 24%, from around 25%.

For the third quarter, Carlsberg reported revenue of DKK19.74 billion versus the DKK19.31 billion expected by a company-compiled consensus. Total beverage volumes rose 5.8% to 41.8 million hectoliters.

"We're satisfied with the value and volume growth in 3Q, resulting in a solid 7% organic revenue growth," Chief Executive Cees 't Hart said.

"It is encouraging that many beer markets in Europe are recovering from the pandemic, giving people the opportunity to socialise," he said.

The company said it will launch the fourth quarterly share-buyback program for 2021, amounting to DKK1.25 billion.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

10-27-21 1054ET