In This Article:
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Revenue Growth: Organic growth of 2.4%.
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Gross Margin: Improved by 120 basis points to 45.8%.
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Operating Profit: Organic growth of 6%; reported growth of 2.8% to DKK11.4 billion.
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Operating Margin: Increased by 10 basis points to 15.2%.
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Net Profit: DKK6.9 billion for continuing operations; adjusted net profit DKK7.3 billion.
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Adjusted EPS: Grew by 0.6% to DKK54.9.
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Free Operating Cash Flow: DKK6.4 billion.
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Net Interest-Bearing Debt: DKK27.4 billion; leverage ratio of 1.73 times EBITDA.
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Return on Invested Capital (ROIC): 13.8%.
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Dividend Payout: 49% of adjusted net profit.
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Acquisitions: GBP3.3 billion acquisition of Britvic; GBP206 million buyout in UK business.
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Shareholder Returns: $5.6 billion returned to shareholders.
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Volume Growth: Beer volumes grew by 0.2% organically; other beverages by 1.6%.
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Regional Performance: Western Europe operating margin improved by 60 basis points to 13.9%; Asia operating profit increased by 7.9% organically.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Carlsberg AS (CABGY) launched the Accelerate SAIL strategy, aiming for a 4% to 6% CAGR in long-term top-line growth.
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The company completed a significant acquisition of Britvic for GBP3.3 billion, enhancing its position in the soft drinks market.
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Carlsberg AS (CABGY) returned $5.6 billion to shareholders, demonstrating strong shareholder value commitment.
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The company achieved a gross margin improvement and increased operating margin despite higher commercial investments.
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Carlsberg AS (CABGY) successfully negotiated full ownership of its businesses in India and Nepal, offering attractive growth opportunities.
Negative Points
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The company faced volume declines in key markets such as Western Europe and Asia, impacting overall growth.
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Carlsberg AS (CABGY) experienced market share losses in France due to price increases ahead of the market.
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The acquisition of Britvic increased the company's leverage to a pro forma 3.4 times net interest-bearing debt to EBITDA.
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The company anticipates a negative impact of 2 to 3 percentage points on organic operating profit growth due to the loss of the San Miguel brand in the UK.
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Carlsberg AS (CABGY) is dealing with hyperinflation accounting in Laos, impacting financial reporting and ROIC.
Q & A Highlights
Q: Can you elaborate on the factors influencing your profit guidance range of 1% to 5%? A: Jacob Aarup-Andersen, CEO: The guidance is influenced by several factors, including consumer sentiment, particularly in China, weather conditions, and the execution of key events like the Chinese New Year. We are not assuming significant changes in consumer sentiment across our main markets, and any improvement or deterioration could affect the guidance range.