Proactive Investors - Carlsberg (CSE:CARLa), the owner of Estrella and San Miguel, traded relatively flat on Tuesday after it revealed sales figures in the UK were shored up by price increases.
Volumes in Western Europe decreased by more than 5% in the third quarter of the 2023 financial year, the Danish brewer revealed in a trading update.
Revenue per hectolitre rose by 11% in the region after suffering a one-off cost of DKr170 million (£19.8 million) after UK excise duties increased after terminating a licensee agreement for Kronenbourg 1664.
While the group claimed cold and wet weather caused the fall in volumes, brewers including rivals AB InBev and Heineken have struggled since the start of the year to achieve organic volume growth and have relied on price hikes to combat high supply chain costs.
Carlsberg’s Russian brewing company Baltika, which is the second largest in Europe and the market leader in the warring nation, remains a headache for the company, with the listed group refusing to “be forced into a deal on unacceptable terms.”
The Super Bock owner has terminated all its license agreements with the brewery, with a limited run-off period in place until April 2024.
Operating profit guidance for the full year has remained at between 4% and 7% but warned that spot rates could reduce this figure by DKr900 million – although capital expenditure is expected to be DKr500 million less than previously forecast.
Shares in Carlsberg are down more than 8% in 2023, having opened trading on Tuesday at around DKr850.