By Adriano Marchese
Carlsberg AS said Tuesday that organic revenue fell in the third quarter despite volume growth in the period, but has raised its earnings expectations for 2020.
The Copenhagen-based brewer said revenue in the period fell to 17.3 billion Danish Krone ($2.75 billion), compared with DKK18.5 billion in the prior year period. This contributed to the decline of 11% in the first nine months to DKK46.1 billion.
In the period, total organic volume growth was 2.4% in the period, benefiting from good growth from Tuborg, Grimbergen, 1664 Blanc and Somersby.
It also noted that craft and specialty volume rose by 12% and alcohol-free brews rose by 29%.
"We're satisfied with our 3Q performance and the fact that we were able to deliver more than 2% volume growth, including strong figures for craft & specialty and alcohol-free brews," Chief Executive Cees 't Hart said.
Carlsberg said it has raised its 2020 earnings expectations, benefiting from continued positive volume development in Russia and China.
In particular, it expects organic operating profit to decline by a mid-single-digit percentage, compared to its previous expectation of a high-single-digit percentage decline.
"Our earnings upgrade is the result of solid execution and our ability to adjust our business and costs to changing market conditions," Mr. Hart said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
10-27-20 1415ET
