Proactive Investors - Beer sales of Carlsberg (CSE:CARLa) brands were forced to rely on price hikes during 2023 and may continue with this strategy in the new financial year, the Danish brewer revealed on Wednesday.
Revenues 4.7% to reach more than DKK 73.5 billion (£1 = DKK 8.75) despite organic volumes falling by 0.5% across all operations.
Volumes in Central and Eastern Europe dropped by 4%, while Western Europe experienced a 2.3% drop.
Brooklyn Brewery was one of Carlberg’s standout brands, seeing a 34% jump in organic volumes, while alcohol-free options lifted by 3%.
While management said easing inflation would improve the brewer’s cost base and revenues in 2024, no volume increase targets were given.
Instead, the world’s third largest brewer plans to increase operating profit by between 1% and 5% - which is slightly below analysts’ consensus.
Additionally, Carlsberg plans to increase its marketing of premium beer brands in countries such as China and Vietnam.
Underlying earnings increased marginally in 2023 to DKK 32.8 billion from DKK 32 billion in the year prior.
A DKK 6.9 billion share buyback and dividend was also proposed by management.
Carlsberg shares lifted around 3.9% following Wednesday’s results.