Q1 2024
TRADING STATEMENT
Q1 2024 TRADING STATEMENT
Disclaimer
FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements, including statements about the Group's sales, revenues, earnings, spending, margins, cash flow, inventory, products, actions, plans, strategies, objectives and guidance with respect to the Group's future operating results. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "intend", "plan", "project", "will be", "will continue", "will result", "could", "may", "might", or any variations of such words or other words with similar meanings. Any such statements are subject to risks and uncertainties that could cause the Group's actual results to differ materially from the results discussed in such
forward-looking statements. Prospective information is based on management's then current expectations or forecasts. Such information is subject to the risk that
such expectations or forecasts, or the assumptions underlying such expectations or forecasts, may change. The Group assumes no obligation to update any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.
Some important risk factors that could cause the Group's actual results to differ materially from those expressed in its forward-looking statements include, but are not limited to: economic and political uncertainty (including interest rates and exchange rates), financial and regulatory developments, demand for the Group's products, increasing industry consolidation, competition from other breweries, the availability and pricing of raw materials and packaging materials, cost of energy, production and distribution related issues, information technology failures, breach or unexpected termination of contracts, price reductions resulting from market driven price reductions, market acceptance of new products, changes in consumer preferences, launches of rival products, stipulation of fair value in the opening balance sheet of acquired entities, litigation, environmental issues and other unforeseen factors. New risk factors can arise, and it may not be possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on the Group's business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Accordingly, forward-looking statements should not be relied on as a prediction of actual results.
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Q1 2024 TRADING STATEMENT
A solid start to the year
VOLUME GROWTH¹
- Growth in all three regions
- Growth in beer partly offset by decline in non-beer volume
REVENUE/HL GROWTH¹
- Price increases across markets
- Positive product mix; negative country mix
REVENUE GROWTH¹
- Growth in all three regions
+2.0%
+4%
+6.4%
¹ Organic growth
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Q1 2024 TRADING STATEMENT
Accelerate SAIL - an update
INVESTMENTS
- Stepping up commercial investments
- Higher marketing investments in support of growth for premium brands across markets
- Higher sales investments in support of increased distribution in certain Asian markets
GROSS MARGIN
- Initiatives to restore gross margin to pre-pandemic levels within procurement, supply chain excellence and value engineering
CULTURE
- Becoming more long-term focused
- Nurturing a growth mindset, while maintaining strong performance management and cost culture
INCENTIVES
- Increasing weight of revenue KPI in incentive schemes
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Q1 2024 TRADING STATEMENT
Portfolio categories
PREMIUM BEER | ALCOHOL-FREEBREWS |
+8% | +2% |
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Q1 2024 TRADING STATEMENT
International brands
CARLSBERG | TUBORG | 1664 BLANC | BROOKLYN |
+15% | +8% | 0% | -1% |
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Q1 2024 TRADING STATEMENT
Western Europe
THE NORDICS | TOTAL VOLUME¹ |
• Premium volume growth in all markets except Norway | +0.2% |
• Strong growth for alcohol-free brews | |
• Revenue/hl growth driven by price and mix | |
• Market share gain | |
SWITZERLAND AND FRANCE | |
• Soft start to the year | REVENUE/HL¹ |
• Revenue/hl improvement driven by price | +5% |
POLAND | |
• Volume growth driven by strong premium performance | |
• Market share gain in a declining market |
UK
- Volume growth supported by good growth for Carlsberg Pilsner
- Increased number of offerings and intensified competition within premium
- 1664 Blanc launched
REVENUE¹
+5.1%
¹ Organic growth
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Q1 2024 TRADING STATEMENT
Asia
CHINA
- Beer market flat (YTD February, estimated)
- Well-executedChinese New Year
- 5% volume growth supported by good growth for both premium and core beer
VIETNAM
- Mid-single-digitmarket decline
- Continued distribution expansion
- Flat volume development, supported by strong premium growth
LAOS
- Mid-single-digitvolume growth with particularly strong growth for soft drinks portfolio
- Strong revenue/hl growth, supported by multiple price increases and positive mix
TOTAL VOLUME¹
+3.1%
REVENUE/HL¹
+4%
REVENUE¹
+7.6%
¹ Organic growth
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Q1 2024 TRADING STATEMENT
Central & Eastern Europe and India
UKRAINE
- Market impacted by the war
- Volume growth supported by premium beer and alcohol-free brews
KAZAKHSTAN
- Volume growth in a soft market
- Strong growth of energy drinks
INDIA
- Double-digitvolume growth
- Strong growth for premium portfolio
EXPORT AND LICENCE MARKETS
- Strong growth for Carlsberg and Tuborg
- Decline for 1664 Blanc and alcohol-free brews
TOTAL VOLUME¹
+2.2%
REVENUE/HL¹
+5%
REVENUE¹
+7.3%
¹ Organic growth
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Q1 2024 TRADING STATEMENT
2024 earnings expectations maintained
ORGANIC OPERATING PROFIT GROWTH OF 1-5%
Assumptions
- Translation impact on operating profit: around DKK -250m, based on the spot rates at 29 April
- Net finance costs (excluding FX): DKK -1.1bn
- Reported effective tax rate: around 21%
- Capital expenditures: around DKK 5.0bn
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Disclaimer
Carlsberg A/S published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 06:13:11 UTC.