Carlsberg’s volumes down 3.6 percent in 2020

Denmark | Carlsberg’s 2020 results were affected by the significant impact of the pandemic on the beer market in general, and the on-trade in particular. Volumes sales declined 3.6 percent to 130 million hl, of which 20 million hl were non-beer, the firm said on 5 February 2021.

For the group, the on-trade channel accounts for around 25 percent (2019) of volumes. Exposure is at the same level in Western Europe, above average in Asia and very small in Eastern Europe. Across the group, on-premise volumes declined by more than 20 percent in 2020, mostly compensated for by higher off-premise sales.

A mixed picture

Because of the lockdowns, Carlsberg’s Western European markets were hit harder than Asia’s. Total volumes were down 7.3 percent organically, causing revenue to drop 13 percent and operating profit to decrease 17 percent.

In Asia, meanwhile, total volumes declined 6 percent organically, with revenue and operating profit dropping 5 percent.

Eastern Europe: a bright spot

Under the circumstances, Eastern Europe seems to have fared well. Volumes were up 6 percent, revenue 1 percent and operating profit 11 percent, due to significant cost savings and Carlsberg’s modest on-premise exposure in the region. Also, Russia’s beer market grew slightly in 2020 overall, probably because of intense promotional activity by all market participants.

Still, compared with 2019, Carlsberg group turnover was down 11.2 percent to DKK 58.5 billion (USD 9.5 billion), its lowest since 2016, while operating profit was down 7.2 percent to DKK 9.7 billion (USD 1.6 billion).

The company said it would propose a 5 percent increase to the dividend. In addition, it announced the launch of a USD 900 million share buyback programme, which will run until 23 April.

In its outlook for 2021, Carlsberg said it hopes to grow operating profit organically between 3 percent and 10 percent.