[COPENHAGEN] Carlsberg plans to lift beer costs to offset rising uncooked materials prices, doubtlessly hitting beer gross sales this 12 months, the Danish brewer mentioned on Friday.
The world’s third-largest brewer reported higher than forecast fourth-quarter gross sales on Friday however mentioned it expects natural development in working revenue this 12 months to fall in need of final 12 months’s degree.
“The considerably larger enter prices and continued influence from Covid-19 will pose challenges in 2022,” chief government Cees ‘t Hart mentioned.
Prices per hectolitre rose by 10-12 per cent final 12 months, pushed by larger commodity and transportation costs, he mentioned, including that the corporate goals to offset the elevated prices by elevating costs, although this might have “a unfavorable influence on beer consumption”.
Carlsberg expects natural working revenue to develop by 0-7 per cent in 2022, in contrast with 12.5 per cent final 12 months.
“We’re trying into a distinct scenario this 12 months, and subsequently we’ve a comparatively broad vary on our monetary steerage,” the CEO mentioned.
The corporate had mentioned on Thursday that it could search for development past its core beer market over the subsequent 5 years to concentrate on classes reminiscent of cider, seltzers and alcohol-free beer, in addition to premium manufacturers reminiscent of 1665 Blanc and Grimbergen, which it says generate larger revenue margins.
Gross sales within the fourth quarter reached 15.2 billion Danish crowns (S$3.14 billion), in opposition to 14.7 billion crowns estimated by analysts in an organization ballot.
Carlsberg mentioned it could suggest a dividend of 24 crowns per share, or 3.4 billion crowns in complete, up 9 per cent 12 months on 12 months.
The corporate additionally launched a 1 billion crown share buyback programme operating till April 22. REUTERS