Carlsberg has reported a 12.6% drop in revenues for the six months to 30 June 2020 as it sees “all markets” affected by the coronavirus crisis.

The drop in on-trade sales, caused by the enforced closure of many businesses across the world, saw organic operating profit drop 8.9% (10.8% on a reported basis) to DKK 4.6 billion, slightly improving operating margin by 30bp to 16% during the period.

Organic revenues for H1 fell 11.6% to DKK 28,830 million, exacerbated by a 14.6% decline in the second quarter, when the pandemic was at its peak.

Globally, total organic volumes were down 7.7% - with Turborg down 19% and Carlsberg down 13% - and beer volumes declined organically by 6.7%.

Nonbeer volumes also declined organically, by 12.9%, affected by the coronavirus as well as the lower sales of soft drinks at the German/Danish border.

Profits in Western Europe were most severely impacted by the virus, with total volumes in its markets declining organically by 9.7%, and revenue declining by 14%.

Organic operating profit decline in the region was down 19.2% and the operating margin was 14.4%.

In the UK, off-trade volumes grew and the Carlsberg brand “performed well,” being a key driver in the business’ slightly improved market share.

Due to lockdown, its UK on-trade total volumes declined by mid-single-digit percentages.

Commenting on the results, Carlsberg CEO Cees ‘t Hart said: “The COVID-19 pandemic is impacting lives worldwide. During these difficult times, our top priority remains the health and well-being of our employees, while at the same time taking the required actions to protect the health of our business.

“All our markets have to a greater or lesser extent been impacted by the COVID-19 pandemic, but the organisation and our people have shown tremendous resilience and flexibility, allowing us to stabilise the business, help society and support our customers. To mitigate the impact of weaker volumes and mix, we’ve reinforced our focus on costs, cash and liquidity.

“Recognising that we’re faced with a new market reality, including changed consumer preferences and a reduced level of on-trade activity, we’re taking measures to adapt our business accordingly.”

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