Carlsberg Hopes for Profit Increase This Year as Cost Inflation Eases After the Company Records a Large Loss for 2023 Due to Writing Off Its Russian Business.

The Danish brewer, maker of the eponymous lager and a range of other beers and ciders, expects organic growth in operating profit of 1%-5% for 2024, as announced on Wednesday.

For 2023, the company achieved an adjusted operating profit of 11.11 billion Danish kroner (1.60 billion US dollars), compared to 11.47 billion the previous year. Revenue increased on a reported basis by 4.7% to 73.59 billion Danish kroner, which was above analysts' expectations, according to a consensus estimate compiled by the company.

The Operating Margin Fell from 16.3% to 15.1%. The Group Reported a Net Loss of 40.79 Billion Danish Kroner for the Year, Which Was Due to the Write-Off of Its Russian Business, Which Was Seized by the Authorities in July.

On an adjusted basis, the net profit amounted to 7.43 billion Danish kroner, which corresponds to a decrease of 5% compared to the previous year due to financing costs and currency effects, according to Carlsberg. Looking further into the future, Carlsberg plans to increase investment in marketing and sales, especially in the Chinese and Vietnamese markets, as well as in its premium brands.

The Company expects long-term revenue growth of 4%-6%, slightly higher than before, and operational profit growth above this level. For the year, Carlsberg proposes a dividend of 27 Danish kroner per share, unchanged from the previous year.

The group also announced on Wednesday a new share buyback program amounting to 1.0 billion Danish kroner.