Carlsberg raises 2020 outlook on strong sales in China and eastern Europe

Danish brewer expects ‘high single-digit percentage’ fall in organic operating profit

 Carlsberg says lockdowns are likely to keep sales subdued in the second half of the year. Photograph: Bloomberg

Carlsberg says lockdowns are likely to keep sales subdued in the second half of the year. Photograph: Bloomberg

 

Danish brewer Carlsberg on Thursday raised its full-year earnings expectations after positive momentum last month, buoyed by solid sales in eastern Europe and an improved outlook in China.

The world’s third biggest brewer after Anheuser Busch InBev and Heineken now expects a “high single-digit percentage” fall in organic operating profit versus its previous expectation of a 10 per cent to 15 per cent decline.

Carlsberg said the new outlook reflected “better than expected August results, continued solid volume development in eastern Europe, and an improved outlook in western China after the recent relaxation of second-wave Covid-19 restrictions”.

The Copenhagen-based brewer warned last month that although drinkers had started to return to bars and restaurants in China and western Europe over the summer, lockdowns were likely to keep sales subdued in the second half of the year.

Shares in Carlsberg traded 3.5 per cent higher following the news. - Reuters