By Michael Susin
Carlsberg beat profit expectations in 2024, but said it expects slower growth due to the loss of the San Miguel brand license in the U.K.
The Danish brewer, maker of the namesake lager brand as well as other beers and ciders, expects organic growth in operating profit of between 1% and 5% in 2025. The target includes an anticipated negative impact of two to three percentage points from the loss of the San Miguel brand in the U.K.
In the long term, the company aims for compound annual revenue growth of between 4% and 6% as well as operating profit growth ahead of revenue growth as part of its turnaround plans.
"Given the challenging environment in some of our major markets, which impacted the volume development, we're satisfied with our solid 2024 results," Chief Executive Jacob Aarup-Andersen said.
Carlsberg reported organic operating profit growth of 6% for last year, at the top line of the company's guidance.
Net profit was 9.12 billion Danish kronor ($1.27 billion), ahead of the company-compiled market views of 6.78 billion kronor. A year earlier, it had booked a loss of 40.79 billion kronor after a significant write-off related to the sale of its Russian Baltika breweries business, which was seized by the authorities.
Adjusted operating profit--the company's preferred metric, which strips out exceptional and other one-off items--rose to 11.41 billion kronor from 11.11 billion kronor. However, it was below market expectations of 11.47 billion kronor due to foreign-exchange volatility, including the impact of hyperinflation in Laos.
Revenue rose 1.9% on a reported basis to 75.01 billion kronor. This was ahead of analysts' expectations of 74.965 billion kronor, according to consensus estimates compiled by the company.
The volume of beers sold slightly increased to 101.2 million hectoliters from 101.0 million hectoliters, but missed market expectations of 126 million hectoliters.
Carlsberg declared a final dividend of 27 kroner a share, unchanged from a year ago.
As part of its turnaround plans, the company is expanding its soft-drink offer through the acquisition of U.K. company Britvic. The takeover extended its partnership with PepsiCo, making Carlsberg its largest bottler in Europe and one of the largest worldwide, it said.
The acquisition comes amid a downtrend in alcohol consumption, with consumers gradually shifting to nonalcoholic drinks--the opposite of nearly five years ago when pandemic-related lockdowns prompted a surge in demand for alcoholic beverages. Last year, Carlsberg's sales of alcohol-free brews grew 6%, the biggest increase by category.
According to the market research platform Research and Markets, the European nonalcoholic beverage market is projected to reach $519.2 billion by 2034 from $299.2 billion in 2024 as more consumers are prioritizing wellness and functional beverages.
It also entered into a bottling agreement with PepsiCo for Kazakhstan and Kyrgyzstan, starting in the first quarter of 2026, doubling its business in the former country.
"On taking over the license in these two markets, we will have a fully integrated total beverage and bottling business in 11 markets," Carlsberg said.
Shares were up 3.1% at 758.60 kroner in early European trading.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
February 06, 2025 03:32 ET (08:32 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.