Danish brewer Carlsberg expects organic growth in operating profit to fall short of last year's level, it said today after posting fourth-quarter sales above expectations.
Carlsberg said organic operating profit is expected to grow by 0-7% in 2022, down from 12.5% growth last year, citing higher costs and continued coronavirus restrictions.
"We're very satisfied with the group's 2021 performance. Although our business was significantly impacted by Covid-19, we delivered strong top and bottom line growth and free cash flow," chief executive Cees 't Hart said in a statement.
"The significantly higher input costs and continued impact from Covid-19 will pose challenges in 2022, but we're well prepared," the CEO added.
The world's third-biggest brewer said sales in the fourth quarter reached 15.2 billion Danish crowns ($2.34 billion), compared to the 14.7 billion crowns estimated by analysts in a company poll.
Carlsberg also said it would look for growth beyond its core beer market over the next five years to focus on categories like cider, seltzers and alcohol free beer.
The Copenhagen-based company said it would speed up its existing strategy of selling more of its premium beer brands.
As part of its new strategy, Carlsberg set new financial targets to run until 2027, including average organic revenue growth of 3%-5% per year and growth in organic operating profit outpacing that of revenue.
"Consumers are increasingly looking for beverages outside the beer category, such as cider, hard lemonade, hard seltzers and ready-to-drink cocktails," Carlsberg said in a statement.
"We see attractive growth opportunities in several of these categories, leveraging brands such as Somersby and Garage," it said.
