Carlsberg has raised its 2027 targets for revenue and operating profit growth.
The world’s third-largest brewer also reported forecast-beating full-year revenue, though its expectations for 2024 operating profit growth were behind many analyst’s expectations.
The company expects organic growth of between 1% and 5%.
The company’s shares rose 3% in early trade for 2024.
Long-Term Plans
Carlsberg’s plans to achieve stepped-up growth included higher spending on marketing for its expensive beers in key countries such as China.
The raised targets came after new chief executive Jacob Aarup-Andersen reviewed his predecessor’s strategy.
Aarup-Andersen gave little away about Carlsberg’s plans, but told journalists that during a challenging few years with the Covid-19 pandemic and the war in Ukraine, the brewer had been defensive.
He said now the company could work to accelerate their long-term plans.
“We see clear opportunities to inject investments and accelerate our long-term growth,” Aarup-Andersen said.
The investments referred to include more spending on marketing for more expensive beers, pushing further into different categories such as ciders and seltzers, and doubling down its expansion in Asia.
Conservative Guidance
In 2024, Carlsberg expects to increase sales and marketing investments by over 20%. Most spending will be dedicated to China and Vietnam, premium brands and digital projects.
Laurence Whyatt, an analyst at Barclays, said the company has a reputation for setting conservative guidance at the start of the year and upgrading it later.
However, he said its current guidance suggested Carlsberg could struggle to reach its estimates.
“Maybe we’re being too optimistic,” Whyatt said of his forecast for operating profit growth of around 12%.
He added that Carlsberg’s 2027 growth goals relied on uncertainties, such as a rebound in the Chinese economy.
Carlsberg said while the consumer environment in the country remained subdued, it still expected to grow volumes in China thanks to market share expansion.
The company reported a 4.7% rise in 2023 revenue to 73.59 billion Danish crowns, narrowly beating the 73.31 billion expected by analysts.
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