Danish brewer Carlsberg A/S upgraded its full-year 2026 organic operating profit growth guidance to 4%-6%, narrowing the previous range of 2%-6%, as synergies from its Britvic acquisition materialize faster than anticipated.
The company reported a 5.9% rise in organic operating profit for the six months to June, exceeding Jefferies' consensus estimate of 4.4%. First-half operating profit increased 4.5% to 7.448 billion Danish crowns, while the operating margin expanded by 30 basis points to 15.8%. Organic revenue grew 2.7%, slightly below the 2.9% consensus, with soft drinks volumes up 9% and alcohol-free beer volumes up 11%.
Carlsberg now expects around 50% of the £110 million in annual Britvic synergies to be realized in 2026, up from a prior estimate of 30%-40%. Organic volumes rose 1.7%, marginally below the 1.9% consensus, reflecting weaker performance in key markets.
China, Carlsberg's second-largest market, remained a drag, with second-quarter volumes down 6% and first-half volumes down 3%, attributed to severe weather and soft demand. Despite this, analysts at Jefferies described the results as "good enough," noting that the earnings beat and upgraded guidance should offset China's weakness. Bernstein analysts called the results "solid" despite the headwinds.
Carlsberg's shares fell more than 3% in early trading, with B shares closing at 908.40 Danish crowns, down 0.85% on the day.
