Carlsberg upped its profits by 13% year on year, but warned prices would rise as beer consumption in Europe falls.
Looking to 2023, the Danish brewer warned that due to rolling hedging on commodity and energy prices ending, the company requires higher pricing to offset the rising costs.
“The higher prices in combination with generally high inflation may have a negative impact on beer consumption in some of our markets, particularly in Europe,” Carlsberg said in its report, adding the UK had started to struggle.
“During the second half, UK business experienced an increasingly challenging trading environment, with consumer behaviour impacted by high inflation,” the full year report stated.
“Volumes for the year grew by mid-single-digit percentages but declined in the second half.”
Premium lagers including Carlsberg and Poretti drove growth in the UK, with the launch of Brooklyn Pilsner further boosting sales, the company added.
Last year, Carlsberg said on-premises (pub) volumes were 3% ahead of 2019 globally.
Underlying profits in Western Europe rose to Kr4.9bln £588mln as the volume of beer sold increased by 2.5% year on year.
The soft fourth quarter in the UK, was “a negative read-across to Heineken,” brokers at UBS added.