Carlsberg, the Copenhagen-based brewer, has launched a new share buyback program worth 1 billion Danish kroner ($142.2 million) while maintaining its full-year guidance. Despite a decrease in overall volumes, the company’s strong performance in its premium drinks segment has mitigated the impact.
Volume Decline and Challenging Environment
Carlsberg reported a 3.0% decline in organic volumes, primarily attributed to adverse weather conditions and a challenging consumer environment. Western Europe and central and eastern Europe experienced significant volume decreases, although Asian markets recorded a slight increase.
Revenue and Volumes
The company’s third-quarter revenue reached DKK20.29 billion, slightly below the expected DKK20.43 billion. However, all three regions contributed to organic revenue growth of 5.8% due to a 9% growth in revenue per hectoliter.
Carlsberg remains optimistic about its performance, projecting organic operating profit growth of 4% to 7% by 2023. However, it anticipates a negative currency impact on operating profit of around DKK900 million. Additionally, financial expenses are expected to reach around DKK750 million, while capital expenditure is estimated at approximately DKK4.5 billion.