Pandemic hit sees Carlsberg’s 2020 beer sales plunge to lowest level since 2007

But bosses are optimistic and the firm said it expects an operating profit growth of 3-10% in 2021

Carlsberg is the world's third-largest brewer (PR image)

Carlsberg

5 February 2021

Carlsberg’s beer sales reached their lowest level since 2007 last year, the Danish beer giant has revealed.

The world’s third-biggest brewer reported its 2020 results on Friday. They showed full-year organic revenues down 8.4% to their lowest since 2007 as the brewer felt the impact of Covid-19 lockdowns shutting pubs and bars around the world for long periods. The company’s on-trade sales — its revenues from sales in clubs, bars and restaurants - plunged by more than 20% in the year.

Off-trade sales - in stores and online - grew in the UK, and were up worldwide "by mid-single digit percentages".

Its Somersby cider brands defeated the Covid gloom, however, seeing volumes up 2% for the year. And a stand-out performer was the firm’s alcohol-free brew, which saw volume growth of 11% in 2020.

The brewer’s bosses said that they expect a “challenging start to 2021”. The firm's fortunes will be impacted by whether or not restrictions are eased by the summer.

But operating profit for 2020 was down just 3.1% to 9.7 billion Danish crowns, and the firm said it expects an operating profit growth of 3-10% in 2021.

The brewer, which completed a M&A deals including a joint venture with British pub group Marston’s in 2020, said it had seen a “solid set of results despite Covid-19” in the year, and highlighted its “strong cash flow, higher dividends and a new share buy-back programme”.

Last year the firm bought back shares amounting to 2.9 billion Danish crowns. It said: “Today, the Company will launch a new DKK 750m share buy-back programme, which will run until 23 April.”

Chief Executive Cees ‘t Hart said: “While the pandemic is not yet behind us and we don’t know how long it will remain a challenge in 2021, we believe that Carlsberg will emerge even stronger from the crisis.

"During 2020, we adjusted our cost base to a new reality and implemented new ways of working. These changes have led to a more flexible company, making us optimistic about our ability to deliver on our longterm strategic priorities.

“The Group’s financial situation remains strong. Despite COVID-19, we improved our operating margin, delivered strong cash flow, increased dividend per share, carried out a sizeable share buyback programme and strengthened the business through acquisitions.”