Danish brewer Carlsberg on Tuesday forecast organic operating profit growth in 2023 below last year's level as higher beer prices are expected to dent consumption.
The world's third-biggest brewer expects organic operating profit this year to change by between minus 5% and plus 5%, compared with 12% growth last year.
"2023 will be another challenging year," Cees 't Hart, chief executive said in a statement.
'Resilient Consumer Category'
"While beer historically has been a resilient consumer category, the higher prices in combination with generally high inflation may have a negative impact on beer consumption in some of our markets, particularly in Europe," he said.
Carlsberg said sales in the fourth quarter rose 6% from a year earlier to 14.6 billion Danish crowns ($2.11 billion), against 14.7 billion crowns estimated by analysts in a poll provided by the company.
Strong Asia Sales
Last October the brewer noted that revenue in the quarter rose 14% to 20.2 billion Danish crowns ($2.72 billion) on the back of strong Asia sales, compared with the 20.3 billion forecast by analysts in a poll compiled by the company.
Sales in Asia grew 19% in the period, with volumes up 10%, but the firm cautioned that the outlook remained uncertain.
"The business environment remains challenging, with an uncertain macro situation, very high inflation and weakening consumer sentiment," Hart said.
It also increased its share buy-back programme for the fourth quarter to 1.5 billion crowns from 1 billion crowns in the third quarter.
Read More: Carlsberg Lifts 2022 Profit Outlook; Shares Trim Losses
News by Reuters additional reporting and edited by Donna Ahern, Checkout. For more drinks stories click here. Click subscribe to sign up for the Checkout print edition.
