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World: Carlsberg hikes prices after significant jump in costs
Brewing firm Carlsberg said it hiked prices over the first quarter of the year in order to offset significantly higher costs, The Independent reported on April 27.
The company, which also brews Tuborg and Brooklyn beer, said it is uncertain how recent increases will affect the amount of its beer bought by customers.
It came as Carlsberg told investors that revenues grew by 8% to 16.4 billion Danish krone (1.95 billion) over the three months to March.
Meanwhile, revenue per hectolitre increased by 12% as it benefited from the recovery of pubs, bars and restaurants following the Covid-19 pandemic, as well as a boost from higher prices.
The continued post-pandemic recovery has also helped improve the firms outlook for earnings.
It said diminished uncertainty in China meant the firm could improve its previous profit guidance to a range of organic operating profit growth of between minus 2% and plus 5%, against previous targets of between minus 5% and plus 5%.
Cees t Hart, chief executive, said: The first quarter of the year showed a strong improvement in revenue per hectolitre, covering the significant increase in our cost base.
Although uncertainties for the year remain, particularly in Europe, were pleased that weve been able to narrow the earnings guidance range and that were initiating a new one billion Danish krone share buyback today in light of our strong balance sheet.
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