Carlsberg revises outlook after strong summer

Carlsberg has upgraded its expectations for the current year after a summer in which sales increased.

Carlsberg revises outlook after strong summer
File photo: Henning Bagger/Ritzau Scanpix

The company released its results for the first half of 2018 on Thursday.

Turnover of 31 billion kroner gave a net result of 2.9 billion kroner, an increase of 200 million kroner in comparison with the same period in 2017.

“We have delivered strong results for the first six months of 2018 with healthy growth in sales, margin improvements in several regions, strong cash flows and continued debt reduction,” CEO Cees ‘t Hart wrote in the publication of the results.

“We are happy to be able to revise our expectations upwards,” ‘t Hart added.

Carlsberg now expects a high single-digit figure for growth this year, the company wrote.

Asian and Eastern European markets both saw strong sales figures during the period, the company said.

“Progress was driven by growth in the market, which in turn was driven by good weather and the Football World Cup,” the company wrote.

Morten Imsgaard, Carlsberg analyst with Sydbank, said the result was very positive for the company.

“This is a very good result in which Carlsberg exceeded expectations on many parameters, even though expectations were already high because of the good summer,” Imsgaard said.

“But if you look past that, these results show that Carlsberg’s strategy of strong control of costs and higher sales of more expensive beer is working,” he added.

READ ALSO: Carlsberg crafts profit rise with premium beers


Is Carlsberg about to release a paper beer bottle?

Two prototypes and new partnerships have brought Danish brewing giant Carlsberg a step closer to releasing a paper beer bottle.

Is Carlsberg about to release a paper beer bottle?
Is the glass Carlsberg bottle living on borrowed time? Photo: Kristian Juul Pedersen/Ritzau Scanpix

Carlsberg said in a press release that it was close to selling beer in paper bottles, in part to the partnership.

Having worked on development of sustainable packaging since 2015, the company is scheduled to present two prototype paper bottles in Copenhagen on Friday.

“Although we’ve not yet reached our goal, the two prototypes are a significant step on the way to achieving our ultimate ambition, which is to bring this groundbreaking technology onto the market,” deputy director of Group Development at Carlsberg, Myriam Shingleton, said via the press statement.

A ‘paper bottle union’ between Carlsberg, The Paper Bottle Company (Paboco) and three other global companies – Coca-Cola, L'Oréal and The Absolut Company – is driving the development, according to the Danish brewery.

Paboco said that the partnership with the high-profile brands would strengthen work to create sustainable packaging.

“We are working across different retail sectors, sharing risk and are together in our vision to make the paper bottle reality which would fundamentally change the sector forever,” Paboco CEO Gittan Schiöld said.

Both prototypes are constructed primarily of sustainably grown wooden fibres and have internal coatings which enable them to contain beer.

READ ALSO: Carlsberg cans plastic six-pack rings to cut waste