Carlsberg Shares Pop After H1 Operating Profit Rises
2022.08.17 12:15
By Scott Kanowsky
Investing.com — Shares in Carlsberg A/S B (CSE:CARLb) rose to near the top of the pan-European STOXX 600 on Wednesday after the Danish brewer posted an uptick in operating income in the first half.
The maker of brands like Somersby and Kronenbourg cider reported a 35.9% jump in operating profit during the first six months of the year to DKK 6.44B, thanks in part to strong sales in Asia that overcame a rise in commodity and energy costs.
Chief executive Cees ‘t Hart said sales were also given a lift in the second quarter by the end of COVID-19 restrictions in most of its markets. Organic revenue rose to DKK 20.51B, below company-compiled estimates of DKK 21.6B.
Carlsberg, which increased its profit growth outlook last week, added that results are also now well ahead of pre-pandemic levels, despite “severe challenges” stemming from the war in Ukraine.
Earlier this year, the company announced plans to exit its operations in Russia following the outbreak of the war in Ukraine. Carlsberg (OTC:CABGY), which owns eight breweries and employes 8,400 people in Russia, said today that the move will lead to a write-down of DKK 9.6B, dragging the group to a net loss in the first half of DKK 5.28B.
