CABGY Carlsburg AS (PK)

By Dominic Chopping

Carlsberg AS (CARL-A.KO) on Thursday backed its full-year guidance after delivering a 9.3% rise in first-quarter revenue, as all of its markets made a good start to the year and with particularly strong growth in Asia.

Revenue rose to 13.89 billion Danish kroner ($2.09 billion) in the quarter, from DKK12.7 billion a year earlier, as overall beverage volumes rose 6.7% to 29.0 million hectolitres. Analysts polled by FactSet had expected revenue of DKK13.54 billion and total volumes of 28.3 million hectolitres.

The company doesn't disclose any further financial information in its quarterly trading statements.

"We had a good start to the year, with particularly strong volume growth in Asia and continued solid progress of our craft and specialty and alcohol-free portfolios, which improved the price/mix," said Chief Executive Cees 't Hart.

Asia saw organic revenue growth of 15.3%, with China and Vietnam the standout performers, it said. In India, volumes grew by mid-single-digit percentages despite very tough comparables with a strong first quarter last year.

The price/mix improvement in Asia was the result of price increases and continued premiumization, with its international beer brands delivering strong results in most markets in the region, Carlsberg added.

In Western Europe, revenue grew organically by 2.4%, with particularly strong growth at the beginning of the quarter, whereas the end of the quarter was softer due to the timing of Easter compared with last year.

Eastern European revenue grew organically by 5.1% with a strong price/mix partly offset by volume decline of 2.4%. Volumes in Russia declined by 4% as a result of market-share losses following price increases in the final quarter of 2018 and the first quarter of 2019.

The company expects to deliver mid-single-digit-percentage organic growth in operating profit in 2019.

Based on spot rates as of May 1, Carlsberg now assumes a positive translation impact of DKK150 million to operating profit this year, from a previous expectation of around zero.

Write to Dominic Chopping at dominic.chopping@wsj.com; @domchopping @WSJNordics

(END) Dow Jones Newswires

May 02, 2019 01:46 ET (05:46 GMT)

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