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Better Than Expected Quarterly Results Prompts Carlsberg To Raise Annual Guidance

Better Than Expected Quarterly Results Prompts Carlsberg To Raise Annual Guidance
The Danish brewer Carlsberg reported better than expected sales revenue for the second quarter, prompting the company to raise its earnings guidance for the entire of 2021 while also warning that its sales in the rest of the year could get hot by the spread of fresh outbreaks of the Covid-19 pandemic in Asia.
The volume of sale of beer during the quarter in its crucial markets of China and Russia had grown to easily surpass the sale volume seen by the company before the pandemic while sales in some of the European markets such as France, Switzerland and Sweden were still lower than the levels that the company had reached prior to the pandemic hit.
"While the uncertainty about the remainder of the year continues, we're satisfied with the strength of the first-half results and the good start to the third quarter," said the company’s Chief Executive Cees 't Hart in a statement.
"Although we see a gradual return to a more normal environment in markets across Europe, other markets, particularly in Asia, remain subject to severe restrictions due to new waves of infection," Hart said.
For the quarter of April to June, sale revenues reached 18.69 billion Danish crowns ($2.94 billion) compared to a forecast of revenues of 17.97 billion crown made by the company itself from data from a poll of analysts that the company had compiled.
The company now forecasts achieving operating profit to register a growth of between 8 and 11 per cent for the entire year, Carlsberg said, which was higher than the company’s previous forecast of a growth rate of between 5 and 10 per cent. 
Carlsberg’s rival Heineken’s beer sale revenues also comfortably beat analysts’ estimates for the first half of the current year as reported by the company earlier this month while the company also issued a warning of rising costs and the impact of the Covid-19 pandemic on its Asian markets potentially impacting its sales for the rest of the year.

Christopher J. Mitchell

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