Danish brewer Carlsberg has lifted its forecast for full-year operating profit growth despite posting weaker-than-expected sales for the second quarter hit by bad June weather.
"As a result of continued solid execution and good cost control, we're increasing our earnings expectations for the year despite volumes in Q2 being challenged by bad weather and weak consumer sentiment in some Asian markets," CEO Jacob Aarup-Andersen said in a statement.
The company said it now expects full-year organic operating profit growth of between 4% and 6%, up from the previously guided range of 1% to 5%.
Carlsberg, the maker of brands such as Kronenbourg 1664, Tuborg and Somersby, said its China business continued to outperform the market despite a slowdown in the quarter due to heavy rainfalls in southern China and weak consumer sentiment.
Performance Highlights
Sales for the April to June period came in at DKK 21.64 billion ($3.14 billion), slightly up from DKK 21.38 billion a year earlier, and below the DKK 22.1 billion forecast by analysts in a poll conducted by the company.
Carlsberg's total volumes fell 3% in the three-month period, hit by poor weather in most markets in June, the company said.
In the first half to 30 June, the brewer witnessed organic volume growth 1.4% and revenue growth of 3.9% across all regions.
In Western Europe, organic volume declined 1.7% in this period, while in Asia it increased by 1.9% and by 4.5% in Central & Eastern Europe and India (CEEI).
In July, Carlsberg agreed to buy British soft drinks maker Britvic for £3.3 billion (€3.9 billion), and buy out UK pub group Marston's from its joint venture with the Danish brewer.
News by Reuters, additional reporting by ESM.
