Carlsberg reported a challenging third quarter with a 1.4% decline in organic sales and a 3% drop in organic volumes, attributing the weakness to a difficult consumer environment, reduced spending, and geopolitical uncertainty impacting premium beer demand. While total sales increased 18% to DKK 24.14 billion, this was largely due to the Britvic acquisition and slightly missed analyst expectations. The Danish brewer is implementing cost-cutting measures and maintained its full-year organic operating profit growth forecast at 3-5%, a target below its initial ambition but exceeding last year's performance.
Carlsberg reported a challenging third quarter, with organic sales declining 1.4% and organic volumes dropping 3%, primarily due to a difficult consumer environment, reduced spending, U.S. tariffs, and geopolitical uncertainty. Total sales increased 18% to DKK 24.14 billion, but this growth was largely driven by the Britvic acquisition and slightly missed analyst forecasts of DKK 24.21 billion. Despite these headwinds, the company observed solid underlying volume and revenue growth in Western Europe and sequential improvement in Asia, bolstered by strong premium portfolio performance. CEO Jacob Aarup-Andersen noted persistent subdued consumer sentiment across markets, prompting the implementation of cost-cutting measures since early summer to adjust the company's cost base. Carlsberg maintained its full-year organic operating profit growth forecast at 3-5%, which, while exceeding last year's 2.4%, remains below its initial 4-6% target. This cautious outlook, coupled with proactive cost management, indicates management's focus on navigating ongoing demand pressures, particularly affecting premium and low-alcohol beer segments.
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