‘Earnings growth on track’, says Carlsberg

By Rachel Arthur contact

- Last updated on GMT

‘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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