Carlsberg beats third-quarter estimates with 'strong growth' in India and China

Carlsberg posted stronger-than-expected third-quarter sales, fuelled by “strong growth” in India and China.

The Danish brewer also credited the “good momentum” of its craft, special and alcohol-free beers for the result.

Carlsberg’s third-quarter net revenue came in at DKK$17.6bn (US$2.69bn) for the period.

The brewer’s craft and speciality brands saw 29% volume growth whilst its alcohol-free portfolio also saw a 58% increase in volume.

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“We delivered a strong third quarter with all regions performing very well,” said CEO Cees ’t Hart.

“Our craft and speciality portfolio and alcohol-free brews continued their good momentum, and in Asia Tuborg, Carlsberg and 1664 Blanc delivered strong growth rates.

“Results in the quarter were further boosted by the very good weather in Western Europe.

“We’re pleased that last week we were able to increase our full-year earnings expectations, and we feel confident that 2018 will show solid top-line growth, margin improvement and a healthy cash flow, whilst we have invested significant funds in our strategic priorities to drive the long-term growth of our business.”

During the quarter, Carlsberg announced that it would invest $117 to upgrade its Kronenbourg brewery in Obernai, France, its largest brewery in Europe.

Carlsberg raised its earnings outlook due to the strong results. It expects to deliver 10-11% organic growth in operating profit for 2018.