UBS has downgraded its rating on Carlsberg from Buy to Sell, with a downward target of DKK 780 (from DKK 1250), and sees a potential downside of -7%.
The analyst highlights the risk to EBIT in 2024, financial costs and the Group's share buyback expectations.
' Carlsberg's premium sales momentum in China is slowing, with risks to expected margins and share buyback operations for FY 2024 ' says UBS.
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Carlsberg A/S is one of the world's leading beer producers. Net sales break down by activity as follows:
- beer production and sales: 101 million hectoliters sold in 2023 primarily under the Carlsberg and Tuborg brands;
- production, bottling, and distribution of non-alcoholic beverages: carbonated beverages, energy drinks, and mineral waters (24.1 million hectoliters sold in 2022).
At the end of 2023, the group had 71 breweries located in Denmark, in the United Kingdom (3), in Poland (3), in Germany (3), in Western Europe (6), in China (26), in Asia (14), and in Central/Eastern Europe (15).
Net sales are distributed geographically as follows: Western Europe (50.7%), Asia (31.7%), Eastern and Central Europe (17.6%).