Half Year 2024 Carlsberg A/S Earnings Call Transcript
Key Points
- Carlsberg A/S (CABGY) delivered continued volume growth of 1.4% despite poor weather in Q2 and weak consumer sentiment.
- Revenue increased by 3.9%, supported by a 2% improvement in revenue per hectoliter due to premium brands and price increases.
- Solid organic operating profit growth of 5% was achieved despite a significant 20% increase in sales and marketing investments.
- The company returned DKK5.5 billion to shareholders, driven by higher share buybacks.
- Carlsberg A/S (CABGY) adjusted its full-year earnings outlook upwards, reflecting confidence in future performance.
- Poor weather in Q2 and weak consumer sentiment negatively impacted performance, particularly in Western Europe and China.
- The acquisition of Britvic and other strategic investments increased financial leverage, with net interest-bearing debt to EBITDA expected to be below 2.5 times by 2027.
- The company faced supply chain constraints in the UK, impacting volumes and market share in Q3.
- Adverse currency movements, particularly in China, Laos, and Ukraine, negatively impacted reported operating profit.
- The loss of the Schweppes license in Switzerland impacted other beverage volumes in Western Europe.
Please go ahead, sir.
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Thank you very much, operator, and good morning, everybody. Welcome to Carlsberg's Half Year 2024 conference call. I said my name is Jacob Aarup-Andersen, I'm the Group CEO of Carlsberg. I have with me our CFO, Ulrica Fearn, and Vice President, Investor Relations, Peter Kondrup.
Let me begin by summarizing the key headlines for this call. First of all, we delivered continued volume growth despite poor weather in Q2 and continued weak consumer sentiment. We reported solid organic operating growth despite a significant increase in sales and marketing investments and as you will have seen, we've adjusted our full year earnings outlook upwards. We did all this while taking some major strategic steps that will support the future of Carlsberg.
I'll go through the key headlines for the group and the regions, and then Ulrica will take over and explain the financials and
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