Carlsberg Sees Profit Growth as Brewer Expands Outside Beer

(Bloomberg) -- Carlsberg A/S expects earnings to grow faster than sales through 2027 as the Danish brewer expands in premium beers, no-alcohol brews and other categories such as ready-to-drink cocktails and hard seltzer.

The company is forecasting an average annual increase in revenue of 3% to 5% between 2023 and 2027, Carlsberg said on its website Thursday. The company, which is scheduled to report 2021 results Friday, said 2022 will be a transition year. The stock traded 3.3% lower at 3:55 p.m. in Copenhagen.

Carlsberg also said it plans to tap growth opportunities in the U.K., France, Switzerland, China, India and Vietnam. The company said it will expand its Garage and Somersby brands as it explores non-beer categories, which also include cider and hard lemonade.

This year may suffer from a difficult comparison. The brewer has forecast operating profit would increase as much as 12% in 2021 after sales of its Tuborg and Kronenbourg 1664 Blanc brands surged in China, a key battleground market for brewers.

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