|Bid||998.60 x 0|
|Ask||999.20 x 0|
|Day's Range||998.00 - 1,010.00|
|52 Week Range||685.40 - 1,021.50|
|Beta (3Y Monthly)||0.66|
|PE Ratio (TTM)||25.83|
|Forward Dividend & Yield||18.00 (1.78%)|
|1y Target Est||N/A|
Danish brewery Carlsberg reported a rise in revenue for Craft Beer sales for the first half of the year amid strong growth in Asia. Yahoo Finance’s Oscar Williams-Grut joins On the Move to discuss.
(Bloomberg) -- The man running Carlsberg A/S says he won’t be “seduced” by negative interest rates as others take advantage of historically cheap credit to pay for expansion.Cees ’t Hart, the chief executive officer of the Danish brewer, says the worry is that companies that succumb to the temptation to issue debt just because it’s cheap could end up with balance sheets they can’t afford.“The moment you get seduced by low rates and companies feel like they have to use them to do very big things -- maybe bigger than they can absorb -- they have to remember they all have to pay the bill later,” Hart said in a phone interview.“There are many companies that have been a lot more aggressive than we have who have then gotten into problems afterwards,” he said.Globally, almost $17 trillion of bonds now trade at negative yields as investors have fled risk. Nestle SA on Aug. 13 became the first company to have 10-year euro debt yielding below zero. In Carlsberg’s home country of Denmark, which has the world’s largest covered-bond market, a bank made history this month when it offered the first ever 10-year mortgage at a negative rate.Since Hart joined Carlsberg in 2015, the company has focused on cutting its debt and reducing costs, a strategy that has included abstaining from major acquisitions. Meanwhile, competitors like Anheuser-Busch InBev NV have gained market share after a series of big takeovers over the past decade. The last time Carlsberg spent a large sum on a takeover was when it bought Scottish & Newcastle Plc in 2008 for roughly $8.5 billion, under Hart’s predecessor.“Carlsberg has lowered its leverage significantly in recent years,” Brian Borsting, a credit analyst at Danske Bank, said in a note. The brewer’s decision last week to extend its share buyback program is “slightly credit negative” but it also “indicates that Carlsberg doesn’t plan larger bolt-on acquisitions near term,” he said.What Bloomberg Intelligence Says: “Carlsberg can invest its cash flow in M&A, having stabilized its balance sheet, restored the dividend payout to 50% and initiated a 4.6 billion-kroner share buyback program. Add-on deals wouldn’t breach its 2x net debt-to-Ebitda ratio target, while a strategic tie-up with Habeco would double net debt, but boost growth, if it succeeds.”----Duncan Fox, consumer products senior industry analystClick here to view the researchCarlsberg, which in June sold 10-year bonds at a 0.875% coupon, has net debt of 1.33 times its Ebitda, down from a gearing level of 2.74 times in 2014. The CEO said he’d like that ratio to stay at around 1.5 times. “We want to be a bit conservative.”While Hart won’t pursue large takeovers at the moment, he said he’s still interested in increasing Carlsberg’s stake in Hanoi-based Habeco. Talks with the Vietnamese government have been on for some years now.“When we’re talking about Habeco we can easily finance that ourselves” using cash flow, the CEO said. “Of course, at the moment rates are low and that makes things easier, but the thing with interests rates is that they can go up as well again.”(Adds Bloomberg Intelligence comment.)To contact the reporter on this story: Christian Wienberg in Copenhagen at email@example.comTo contact the editor responsible for this story: Tasneem Hanfi Brögger at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In the UK Carlsberg has publicly reversed out of a famous advertising claim of making “probably” the best beer in the world. It still has a great recipe for profitable brewing, even in flat European markets. Chief executive Cees ’t Hart has overseen a turnround at the Danish brewer since taking over in 2015.
Asia, the brewer's fastest-growing region, saw organic net revenue growth of 15%, lifted by 8.5% volume growth and increased sales of premium brands, despite a slight decline in China and a 3 percent volume slide in Russia, its top markets. Just last week, Carlsberg raised its expectations for organic operating profit to "high-single-digit" from "mid-single-digit" percentage growth and said it had achieved a strong operating margin improvement. Carlsberg has shifted its focus from cost-cutting to revenue growth, especially by selling more of its pricier brands.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Carlsberg A/S got a further boost from craft beers such as London Fields Brewery in the first half, with a 17% sales gain from its specialty division fueling profit growth that’s lifting the shares.Net profit rose 25% in the period, the Danish company said Thursday, after it raised its full-year outlook last week. The shares rose as much as 4.9% in Copenhagen, bringing the increase this year to more than 40%.“All our key growth priorities –- craft & specialties, alcohol-free brews and Asia -– delivered good growth,” the company said in a statement.The latest update shows that Chief Executive Officer Cees ’t Hart’s focus on boosting sales is paying off. Along with craft brews, high-end brands such as Grimbergen and Jacobsen ales are driving growth, after several years in which the CEO concentrated on cutting costs.The strength of the first half suggests a further upgrade is possible later in the year, Jefferies analyst Edward Mundy said in a note. The brewer needs no growth in the latter six months to meet its guidance, and Carlsberg pointed to “solid start” to the third quarter.Carlsberg and industry giant Anheuser-Busch InBev NV are outperforming rival Heineken NV, which lagged behind in the most recent period.Carlsberg is also starting the second stage of a previously announced share buyback, planning to repurchase 2 billion kroner ($300 million) of its stock.\--With assistance from Albertina Torsoli.To contact the reporters on this story: Christian Wienberg in Copenhagen at email@example.com;Thomas Buckley in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Eric Pfanner at email@example.com, Christian Wienberg, Tasneem Hanfi BröggerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Carlsberg A/S surged the most in a decade after the Danish brewer raised its full-year earnings outlook, helped by demand for its pricier craft beers.Following an initial focus on cutting costs, Chief Executive Officer Cees ’t Hart is switching gears to drive more revenue from more exclusive beer brands such as Grimbergen. The shares rose as much as 12% Thursday in Copenhagen, their biggest intraday gain since 2009. Budweiser maker Anheuser-Busch InBev NV gained as much as 2.3%.Read this: ‘More Dependable’ Carlsberg Gaining Analyst FavorAs demand for mass-market lagers slows in the developed world, Carlsberg has sought more growth from its specialty and craft division that includes London Fields brews, acquired two years ago, and Jacobsen ales. Investments in countries such as Cambodia have also brought more control over sales and marketing in emerging markets.The strategy is working: the company said it now sees organic operating profit rising at a high single-digit percentage rate, after previously forecasting growth in the mid-single-digits. Carlsberg joins AB InBev in reporting a positive performance, in contrast to rival Heineken NV, which lagged behind in the most recent period.What Bloomberg Intelligence Says“The strategy focusing on premium and craft brews continues to deliver improved volume and earnings, despite Europe’s poor early summer weather.”\-- Duncan Fox, consumer products analystClick here to read the pieceCarlsberg has increased its profit forecast at least once in each year since 2016, the year after the start of ‘t Hart’s tenure. The company said it will report first-half results on Aug. 15.(Updates with forecast history in final paragraph)To contact the reporter on this story: Thomas Buckley in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Eric Pfanner at email@example.com, John LauermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European shares had their best day in almost two months on Thursday as upbeat trade data from China and a steadying of its currency helped to calm some fears of recession and a further escalation in Sino-U.S. trade tensions. The pan-European STOXX 600 index rose for a second day, closing 1.7% higher, swept up in a global rally after days of turmoil sparked by an escalation in U.S.-China trade tensions last week. Data showed July exports in China rose at their fastest since March, while a fall in imports was not as bad as a forecast, soothing worries that the protracted and escalating trade war will tip the world into recession.
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European brewers expect they will need to tell more demanding drinkers as much about the environmental impact of a beer as its taste in the next decade as Europe enforces pollution laws. The European Union has brought in waste management laws and banned single-use plastics in the last 12 months, as well as setting limits on carbon emissions from trucks, while Green parties gained in last month's European Parliament election.
KLP, Norway's largest pension fund, will no longer invest in gambling companies and alcohol makers, and recently sold stocks and bonds in such firms worth some $320 million, it said on Tuesday. The decision ...
Danish brewer Carlsberg said on Thursday it had agreed with Liverpool FC to extend its sponsorship deal with the soccer club until the 2023-24 season, marking the longest running partnership in England's Premier League. Liverpool, which ended second behind Manchester City in the domestic English league this season and will play Tottenham Hotspur in Europe's Champions League final next week, has been sponsored by Carlsberg since 1992. "The relationship between Carlsberg and Liverpool FC is iconic, and we're extremely proud to have been a part of the family for over a quarter of a century," said Jessica Spence, Carlsberg's Chief Commercial Officer.
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Danish brewer Carlsberg on Thursday reported a 9 percent jump in first-quarter sales, partly buoyed by Asian drinkers switching to more expensive beers. Positive currency movements and an acquisition in Cambodia also helped the world's third-largest brewer, behind Anheuser Busch InBev and Heineken, grow Asian sales by 28 percent year-on-year in the first quarter ended March, it said. Carlsberg has taken major cost-cutting measures since Hart took over in 2015, intended to help redress a decade of weakness in its key market Russia.
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can do a lot better than that by buying good quality businesses for attractive prices. For example, the Carlsb...
Anheuser-Busch InBev has enlisted Citigroup and Bank of America Merrill Lynch (BAML) to the team of banks working on the sale of its Asia-Pacific business, three people with direct knowledge of the matter told Reuters. "There is, however, no decision as to whether we might undertake an IPO or any other potential transaction relating to our Asia Pacific business," AB InBev said, adding it was committed to being a long-term investor in the region.