Carlsberg estimates operating profit growth of up to 5% in 2024 By Reuters

© Reuters. FILE PHOTO: A bar worker carries a tray of Carlsberg beer in Copenhagen, Denmark, July 30, 2022. REUTERS/Andrew Kelly/File Photo

LONDON (Reuters) – Danish brewer Carlsberg (CSE:) said on Wednesday it expects organic operating profit growth of 1% to 5% in 2024 and inflationary pressures to moderate.

The world’s third-largest brewer and maker of brands such as Kronenbourg 1664 reported a 4.7% rise in 2023 revenue to 73.59 billion Danish crowns, narrowly topping the 73.31 billion expected by analysts, LSEG data showed.

It said it expects a higher cost base in 2024 but will look to offset this with higher revenue per hectolitre and tight cost controls, though it would increase sales and marketing investments, the latter by over 10%.

CEO Jacob Aarup-Andersen said the company’s financial health meant it could increase spending on growth initiatives and still deliver on its ambitions.

“The outperformance of our premium portfolio and our results in key Asian markets in 2023 are an affirmation that we have a strong platform to expand from,” he said in a statement.

Carlsberg reported organic operating profit growth of 5.2%, around the middle of its guided range of 4-7%.

It raised its 2027 growth targets on Tuesday.

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