Danish brewer Carlsberg has reported first-quarter sales above expectations and narrowed its profit expectation for the full year as it managed to increase beer prices to cover rising costs.
"The first quarter of the year showed a strong improvement in revenue per hectolitre, covering the significant increase in our cost base," chief executive Cees 't Hart said in a statement.
“Although uncertainties for the year remain, particularly in Europe, we’re pleased that we’ve been able to narrow the earnings guidance range and that we’re initiating a new DKK 1 billion share buyback today in light of our strong balance sheet."
Full-Year Expectations
The world's third-biggest brewer narrowed its expectation for organic operating profit this year to between minus 2% and plus 5% from its previous range of between minus 5% and plus 5%.
Still, some uncertainty remains over how consumers will react to higher prices and continued high inflation, particularly in Europe, the company said.
Sales stood at DKK 16.4 billion (€2.2 billion) in the first three months of the year, compared with DKK 15.9 billion forecast by analysts in a poll gathered by the company.
Read More: Carlsberg Agrees To Acquire Canada's Waterloo Brewing
New CEO Incoming
In March, Carlsberg announced the appointment of the current leader of services provider ISS, Jacob Aarup-Andersen, as its new chief executive.
Aarup-Andersen will take over from Cees 't Hart, who declared his intention to retire at the end of September.
The exact commencement date of the new CEO will be disclosed at a later time, according to the world's third-largest brewer in a statement. Aarup-Andersen assumed the position of CEO at ISS in 2020.
Read More: Carlsberg Announces CEO Cees 't Hart's Retirement Plan
News by Reuters, additional reporting by ESM – your source for the latest drinks news. Click subscribe to sign up to ESM: European Supermarket Magazine.
