World: Carlsberg’s total revenue rises despite volume decline in Europe last year

Sales of drinks owned by Carlsberg declined in Europe in volume terms last year, but total group revenues rose nonetheless, as the giant brewer increased prices to offset a steep rise in costs, its latest financial figures reveal.

The brewer said in its release on February 7 that it had "solid results in a challenging environment" in 2023 as it aims to step up sales in China, with an increase in total group revenues helped "by price increases across markets to offset the significant cost increases".

Year-on-year volume growth fell in its Western Europe division by 2.3% and in Central Europe while it decreased in Eastern Europe by 4%, whereas its Asia division posted an increase in volume sales of 3.7%.

The company said in volume terms total sales of international brands such as Tuborg were up 3%, 1664 Blanc rose by 3%, Brooklyn increased by 34%, and alcohol-free drinks rose by 3%, while sales of Somersby fell 6% and Carlsberg sales were unchanged, on the same basis.

However, the Danish firm also hailed its "strong revenue growth, driven by all regions" around the world of over 9% which translated into growth of 4.7% as reported in krone.

Reflecting the increase in revenues, operating profits rose by over 5%, "partly offset by cost inflation and increased commercial investments", it said, but net profit fell by 5%, "impacted by higher finance costs and currency movements".

The brewer said that the global economic uncertainty made the outlook for 2024 "uncertain" but that price pressures were easing. "Consequently, we expect a more moderate increase in our total cost base than in previous years," it said.

The company doesn't break out specific figures for Ireland, but the Irish sales, under a re-organisation since the start of the year, is now reporting to a division called Central and Eastern Europe and India. The division includes "Azerbaijan, the Baltics, Belarus, Bulgaria, Canada, Croatia, Greece, India, Italy, Kazakhstan, Nepal, Serbia and Ukraine, and the Export and License business, in which some of the important markets are Australia, Belgium, Ireland, the Middle East, North America, South Korea and Turkey", it said.

“We delivered a solid set of results for 2023, which were achieved despite a challenging consumer environment, significant inflationary pressure and currency headwinds," said chief executive Jacob Aarup-Andersen.

Shares in Carlsberg closed over 4% higher in the latest trading session, as the market welcomed the Danish brewer's plans to reach its stepped-up growth ambitions through 2027, including higher spending in key countries such as China.

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