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‘Earnings growth on track’, says Carlsberg

By Rachel Arthur+

08-Feb-2017
Last updated on 08-Feb-2017 at 11:22 GMT2017-02-08T11:22:32Z

‘Earnings growth on track’, says Carlsberg

Carlsberg CEO Cees ‘t Hart says 2016 was a ‘good year’ for the Carlsberg Group, having delivered 5% organic growth in operating profit in the year ending December 31, 2016.

He also points to the steps the company is making to become more successful: in particular the ‘SAIL’22’ strategy, which was launched last year and sets out strategic priorities for the business.

Carlsberg is to continue its focus on beer in three regions: western Europe; eastern Europe; and Asia.

Priorities include focusing on its business in Russia; building a craft and speciality portfolio, and growing its premium portfolio in Asia.

“SAIL’22 and its priorities are now well integrated in our plans for 2017,” said Cees ‘t Hart.

“In addition, Funding the Journey [the predecessor to SAIL’22] delivered benefits faster than anticipated for the year.”

“In 2017, we’re determined to achieve a substantial proportion of the remaining Funding the Journey benefits, allowing us to grow earnings organically and invest in SAIL’22-related activities to support the future growth of the company.”

2016 highlights

In the year ending December 31, 2016, Carlsberg’s reported net revenue was DKK 62.6bn ($8.96bn), showing organic growth of 2%.

The Funding the Journey program delivered approximately DKK 0.5bn of the anticipated benefits of DKK 1.5bn - 2bn by 2018.

Total organic volumes declined 2%, mainly due to less exposure to margin-dilutive volumes. However, some brands saw considerable volume growth such as Tuborg (up 9%), Carlsberg (up 5%) and Grimbergen (up 11%).

Carlsberg says it expects to deliver mid-single-digit organic operating profit growth in 2017.

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