Carlsberg lifted its forecast for full-year operating profit growth on Tuesday despite posting weaker-than-expected sales for the second quarter.
Bad weather in June impacted second-quarter sales for the Danish brewer.
The company said it now expects full-year organic operating profit growth of between 4% and 6%, up from the previously guided range of 1% to 5%.
Chief executive of the company Jacob Aarup-Andersen said in a statement, “As a result of continued solid execution and good cost control, we’re increasing our earnings expectations for the year despite volumes in Q2 being challenged by bad weather and weak consumer sentiment in some Asian markets.”
Carlsberg said its China business continued to outperform the market despite a slowdown in the quarter due to heavy rainfalls in southern China and weak consumer sentiment.
On a call with journalists, Aarup-Andersen said, “There’s no doubt that the Chinese market is tough.
“It declined 5% in the first half of the year, and we don’t see that improving in the second half.
“We’re still performing solidly in China, but within premium we’re seeing high-end premium consumers migrating down to more affordable premium brands.
“Bigger stock levels across the industry and weak consumer sentiment means that we are cautious going into the second half.”
Sales And Shares
Sales for the April to June period came in at 21.64 billion Danish crowns, up slightly from 21.38 billion a year earlier and below the 22.1 billion forecast by analysts in a poll conducted by the company.
Carlsberg’s total volumes fell 3% in the three-month period, hit by poor weather in most markets in June, the company said.
The brewer’s shares were trading 3.9% lower in early trading to their lowest level since 15 March 2022.
Shares have fallen 18% since 21 June when it announced an offer for a takeover of British soft drinks maker Britvic.
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