On Thursday, Danish brewer Carlsberg (CARLb.CO) surpassed first-quarter sales predictions and boosted the lower end of its full-year profit outlook range due to strong beer sales in China.
The world’s third-largest brewer now expects organic operating profit growth of between minus 2% and 5% this year, down from minus 5% to plus 5%.
“What has changed since the beginning of the year, when we were uncertain about China, is that the situation there has improved significantly because of a good start of the year and very good throughput during Chinese New Year,” said Chief Executive Cees ‘t Hart.
“We are optimistic for the coming quarters,” he stated.
After pandemic lockdowns, consumers ordered more costly beers, according to the firm.
“The first quarter of the year showed a strong improvement in revenue per hectolitre, covering the significant increase in our cost base,” Hart stated.
Brewers boosted pricing because of rising energy and raw material expenses.
The business said customer reactions to increasing pricing and strong inflation, particularly in Europe, are still unpredictable.
Sales in the first three months were 16.4 billion Danish crowns ($2.4 billion), compared to 15.9 billion crowns predicted by experts in a company poll.
Carlsberg fell 0.59% at 0723 GMT.
