By Dominic Chopping

Carlsberg AS said Thursday that it expects full-year organic operating profit to fall 10%-15%, and that it has decided not to start the second tranche of its buyback program.

The Danish brewer suspended full-year guidance in April but said Thursday that it is well into the peak summer season and can base guidance on the first-half, July figures and the current Covid-19 situation in its markets.

Carlsberg prereleased headline first-half figures, expecting an 11.6% fall in organic revenue, an 8.9% decline in organic operating profit and a 7.7% decline in organic volumes. These figures were all confirmed Thursday.

Revenue fell to 28.83 billion Danish kroner ($4.55 billion) in the half, from DKK32.99 billion a year earlier, and overall beverage volumes fell to 62.8 million hectoliters from 68.1 million hectoliters. Analysts polled by FactSet had expected revenue of DKK29.55 billion.

Adjusted net profit attributable to shareholders fell to DKK2.87 billion, in line with estimates of DKK2.88 billion.

"To mitigate the impact of weaker volumes and mix, we've reinforced our focus on costs, cash and liquidity," said Chief Executive Cees 't Hart.

"Recognizing that we're faced with a new market reality, including changed consumer preferences and a reduced level of on-trade activity, we're taking measures to adapt our business accordingly.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

August 13, 2020 02:02 ET (06:02 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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