Carlsberg expects 1%-5% organic growth in operating profit for 2024 after experiencing a loss in the previous year. The company plans to increase investments in marketing and sales, specifically in China and Vietnam, and focus on its premium brands.
Carlsberg, the Danish brewer known for its iconic lager and other beverages, is optimistic about its earnings prospects for the current year. The company experienced a significant loss in 2023 due to the write-off of its Russian business, yet it now anticipates 1%-5% organic growth in operating profit for 2024.
In 2023, Carlsberg achieved an adjusted operating profit of 11.11 billion Danish kronor ($1.60 billion), slightly lower than the previous year's DKK11.47 billion. The reported revenue saw a 4.7% increase, reaching DKK73.59 billion, surpassing analysts' expectations. However, the operating margin dipped from 16.3% to 15.1%.
Looking ahead, Carlsberg plans to intensify its investments in marketing and sales, particularly in the Chinese and Vietnamese markets, as well as focusing on its premium brands. The company expects long-term revenue growth of 4%-6%, slightly higher than before, with operating-profit growth surpassing this level.
Carlsberg will propose an unchanged dividend of DKK27 per share for the year. Additionally, the company has initiated a new buyback program worth DKK1.0 billion, starting from Wednesday.
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