Carlsberg Group has upgraded its earnings expectations for 2021 after reporting a rise in revenue and profit for the first half of the year.
The Danish brewer said in its results statement that business performance continues to be impacted by the COVID-19 pandemic, with market volatility and uncertainty remaining high.
Organic operating profit (reported in Danish kroner) came in at DKK5.11bn in the first six months, up 10.7% on the same period of 2020, while adjusted net profit was 10.3% higher at DKK3.16bn.
Revenue grew by 9.9% from the first half last year to DKK31.68bn and by 17.7% in the second quarter compared with the same period of 2020.
Free cash flow rose to DKK5.28bn in the half-year to end-June from DKK3.14bn.
In light of the strong half-year numbers and a good start to the third quarter, Carlsberg upgraded its earnings guidance for the full year and now expects organic growth in operating profit of 8-11%, up from 5-10% previously.
The brewer completed the second tranche of its share buyback programme, amounting to DKK1bn, on 13 August, and is launching the third quarterly buyback programme today, also totalling DKK1bn.
“We’re very satisfied that the group delivered a strong set of results despite the continued market uncertainty as a result of the pandemic. Top-line growth, operating margin improvement and significantly higher cash flow demonstrate the strength of our geographic footprint and brand portfolio, and the strong execution of our initiatives to safeguard the short-and long-term health of the Carlsberg Group,” said chief executive officer Cees ’t Hart.
“The resilience of our strategic priorities is further evidenced by overall figures for H1 2021 being ahead of H1 2019, on a like-for-like basis," he added.
The CEO noted that although European markets are returning to a more normal environment, “other markets, particularly in Asia, remain subject to severe restrictions due to new waves of the infection".