XCSE:CARL-A ESEF Report
CARLSBERG A/S (XCSE:CARL-A)
ESEF Report
2023-08-29
For: 2023-06-30
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September 22, 2026
Company announcement 32/2023
16 August 2023
Page 1 of 33
SOLID BUSINESS PERFORMANCE WITH CONTINUED
STRONG ASIA AND PREMIUM PERFORMANCE
FINANCIAL STATEMENT AS AT 30 JUNE 2023
Unless otherwise stated, comments in this announcement refer to H1 performance.
CONTINUED VOLUME GROWTH, DRIVEN BY ASIA AND THE PREMIUM
PORTFOLIO
Organic volume growth 0.8%
• Organic volume development in Western Europe -2.1%, Asia +4.8% and Central & Eastern Europe
-1.9%.
• Premium portfolio volume growth of 3% driven by our international premium brands: Tuborg
+3%, Carlsberg +1%, 1664 Blanc +5%, Brooklyn +52% and Somersby -7%.
• Alcohol-free brews -1%; growth in Q2 of 2%.
STRONG REVENUE GROWTH IN ALL REGIONS
Organic revenue growth 11.2%
• Organic revenue growth in all regions: Western Europe +9.2%, Asia +11.7% and Central & Eastern
Europe +16.3%.
• Reported revenue growth of 6.6% to DKK 37,788m, impacted by adverse foreign exchange
movements.
• Revenue/hl +10%, with strong growth in all regions.
SOLID ORGANIC OPERATING PROFIT
Organic operating profit growth 5.2%
• Operating profit growth reflecting strong revenue growth, partly offset by cost inflation and
higher sales and marketing investments.
• Reported operating profit impacted by adverse foreign exchange movements, declining by 2.6%
to DKK 6,272m.
• Reported net profit of DKK 3,495m (2022: DKK -5,276m). Adjusted net profit of DKK 4,749m
(2022: DKK 5,059m).
• Adjusted earnings per share for continuing operations of DKK 29.3 (+0.2%).
• Free operating cash flow of DKK 4,346m.
DRIVING SHAREHOLDER VALUE
Total share buy-back and dividend payment of DKK 5.0bn
• NIBD/EBITDA 1.46x.
• ROIC improvement of 30bp to 15.2%; excluding goodwill +50bp to 41.2%.
• New quarterly share buy-back programme, amounting to DKK 1bn, launched today.
CVR.no. 61056416 www.carlsberggroup.com
LEI 529900100WJQYB5GYZ19
SUBSEQUENT EVENTS
• On 16 July, a presidential decree temporarily transferred the management of Baltika Breweries
to the Russian Federal Agency for State Property Management, despite the announcement of
the sale of the business on 23 June.
2023 EARNINGS EXPECTATIONS
On 15 August, we upgraded our earnings expectations for 2023. The upgrade was due to the
continued solid business performance year to date and based on our expectations for the remainder
of the year:
• Organic growth in operating profit of +4% to +7%.
• Based on the spot rates at 14 August, we assume a translation impact on operating profit of
around DKK -900m for 2023.
CEO Cees ’t Hart says: “We’re satisfied with this solid set of results, which have been achieved in a
challenging environment. This is the first year of executing our new strategy, SAIL’27, and we
continued to invest in long-term health and growth opportunities despite significant inflation in our
cost base. The strategic health of our business continues to improve, as seen from the growth of our
international premium brands and continued growth in key markets in Asia.
“Thanks to the results for the first half year, we were able to upgrade our earnings expectations
yesterday, and we’re today initiating a new DKK 1bn share buy-back.
“In June, we were pleased to announce the sale of the Russian business. However, shortly
afterwards, we were shocked that a presidential decree had temporarily transferred management of
the business to a Russian federal agency. We’re assessing the situation and the legal consequences
of this highly unexpected move and will seek to protect our assets and the value of the business.
“After eight eventful years, this is my last results announcement as CEO of the Carlsberg Group.
We’re very proud of the results that we as a team have achieved, including in the turbulent times of
the last few years. The long-term opportunities for Carlsberg remain significant, and I’m confident
that the new CEO, Jacob Aarup-Andersen, the leadership team and our many dedicated employees
will continue the value creation journey.”
Contacts
Investor Relations: Peter Kondrup +45 2219 1221
Iben Steiness +45 2088 1232
Media Relations: Tanja Frederiksen +45 5195 7778
For more news, sign up at www.carlsberggroup.com/subscribe or follow @CarlsbergGroup on Twitter.
Carlsberg will present the results at a conference call today at 9.30 a.m. CET. Dial-in information
and a slide deck will be available on www.carlsberggroup.com.
Company announcement 32/2023
16 August 2023
Page 2 of 33
www.carlsberggroup.com
KEY FIGURES AND FINANCIAL RATIOS
Key figures and financial ratios are presented for continuing activities unless otherwise stated.
DKK million
H1
2023
H1
2022 2022
Volumes (million hl)
Beer 52.4 52.0 101.0
Other beverages 12.4 12.2 24.4
Income statement
Revenue 37,788 35,447 70,265
Gross profit 16,882 16,401 32,067
EBITDA 8,229 8,570 15,657
Operating profit before special items 6,272 6,442 11,470
Special items, net -169 -865 -784
Financial items, net -332 -508 -725
Profit before tax 5,771 5,069 9,961
Income tax -1,212 -1,115 -1,778
Profit from continuing operations 4,559 3,954 8,183
Net result from Russian operations held for sale -404 -8,618 -8,075
Profit for the period 4,155 -4,664 108
Attributable to:
Non-controlling interests 660 612 1,171
Shareholders in Carlsberg A/S (net profit) 3,495 -5,276 -1,063
Shareholders in Carlsberg A/S, adjusted¹ 4,749 5,059 9,694
Shareholders in Carlsberg A/S, continuing operations, adjusted 4,005 4,116 7,785
Statement of financial position
Total assets 121,006 128,265 115,341
Invested capital 61,616 60,979 60,211
Invested capital excl. goodwill 23,280 21,579 21,758
Net interest-bearing debt (NIBD) 22,364 18,090 19,326
Equity, shareholders in Carlsberg A/S 28,286 34,968 31,902
Statement of cash flows
Cash flow from operating activities 6,108 8,380 12,949
Cash flow from investing activities -2,324 -1,086 -3,065
Free cash flow 3,784 7,294 9,884
Financial ratios, continuing operations
Gross margin % 44.7 46.3 45.6
EBITDA margin % 21.8 24.2 22.3
Operating margin % 16.6 18.2 16.3
Effective tax rate % 21.0 22.0 17.9
Return on invested capital (ROIC) % 15.2 14.9 15.2
ROIC excl. goodwill % 41.2 40.7 41.6
NIBD/EBITDA x 1.46 1.11 1.23
Stock market ratios
Earnings per share (EPS) DKK 25.5 -37.4 -7.6
Earnings per share, adjusted (EPS-A)¹ DKK 34.7 35.9 69.3
EPS-A, continuing operations DKK 29.3 29.2 55.7
Share price (B shares) DKK 1,090.5 904.0 923.2
Weighted average number of shares, excl. treasury shares 1,000 136,836 140,954 139,835
1
Adjusted for special items after tax and special items after tax in the Russian operations held for sale.
Company announcement 32/2023
16 August 2023
Page 3 of 33
www.carlsberggroup.com
EMBARKING ON SAIL’27
2023 marks the first year of our new strategy, SAIL’27. In light of the high level of uncertainty faced
by our business, the objective for the year is to address the short-term challenges while staying on
course to reach the long-term SAIL'27 ambitions and sustain the strategic, organisational and
financial health of the Carlsberg Group. Consequently, we continue to invest in our SAIL’27 priorities.
The strategic health of the business continues to improve, as seen from the growth for our
international premium brands and continued growth in key markets in Asia.
PORTFOLIO
PREMIUM PORTFOLIO
Our premium brand portfolio includes both international and local premium brands and accounted
for around 16% of total Group volumes in 2022. The premium portfolio grew by 3%, supported by
mid-single-digit percentage growth in Asia and Central & Eastern Europe, while premium volumes in
Western Europe were down by 2%, particularly impacted by lower volumes in Poland. The main
drivers were Carlsberg and Tuborg in markets where they are positioned as premium, as well as
1664 Blanc and Brooklyn.
Carlsberg volumes were up by 1%. Double-digit growth in Asia, with particularly strong growth in
China and India, was offset by lower volumes in Western Europe. Carlsberg volumes in Central &
Eastern Europe, including the export & licence markets, were flat year on year.
Tuborg volumes grew by 3%, driven by Asia, notably China and Vietnam. In Central & Eastern
Europe, Tuborg grew strongly in markets such as Ukraine, Serbia and Greece, although this was
offset by lower volumes in Italy, Bulgaria and the significant volume decline in Turkey in Q1
following the devastating earthquake.
1664 Blanc continued to progress well and delivered 5% volume growth. We saw strong growth in
many markets, such as Norway, Finland, Ukraine, Serbia and Vietnam. After a difficult start to the
year, volumes in China grew in Q2.
Brooklyn continued its strong growth with volumes up by 52%, supported by very strong growth for
Brooklyn Pilsner in the UK, which is the largest market for the brand, and in markets such as
Denmark, Poland, Italy and the Baltics.
MAINSTREAM CORE BEER
Our mainstream local power brands enjoy strong local presence. They are an important category in
our beer portfolio, accounting for around 62% of total Group volumes in 2022.
Total core beer volumes were flat, with mid-single-digit percentage growth in Asia offset by lower
volumes in Western Europe and Central & Eastern Europe. The growth in Asia was driven by brands
such as Chongqing and Dali in China, Beerlao in Laos and Huda in Vietnam.
ALCOHOL-FREE BREWS
Alcohol-free brew volumes were up by 2% in Q2, while volume development in H1 was -1%. The
development was impacted by less promotional activity for Tourtel in France, lower volumes in the
Middle East and declining volumes of Baltika 0.0 in Ukraine due to the delisting of the brand in
2022 following the outbreak of the war. Excluding Baltika 0.0, alcohol-free volumes grew by 4% in
Q2 and by 1% in H1. In many markets in Western Europe and Central & Eastern Europe, we
continued to see solid growth for the category, including good growth for alcohol-free variants of
Somersby and Carlsberg.
Company announcement 32/2023
16 August 2023
Page 4 of 33
www.carlsberggroup.com
BEYOND BEER
Somersby grew in markets such as the UK, Sweden, Laos and Ukraine, while total volumes were
down by 7%, impacted by volume decline in some large markets, including Poland, Canada and
South Korea.
E-COMMERCE
Our B2B e-commerce platform, Carl’s Shop, continued its positive momentum. Revenue on the
platform increased by 34%, along with 8% growth in active customers and user engagement on the
site.
RAISING OUR AMBITIONS WITH TOGETHER TOWARDS ZERO AND BEYOND
In February, we reported strong progress for our Together Towards ZERO programme, exceeding
targets for carbon and water. Our new and enhanced ESG programme, Together Towards ZERO
and Beyond (TTZAB), focuses on the most material topics for our business, setting ambitious
targets for areas such as carbon, water, sustainable agriculture, packaging, responsible drinking,
diversity and health & safety.
In Lithuania, we entered into a novel energy-as-a-service power purchase agreement (PPA), which
will provide renewable energy to the brewery and cover 100% of its annual demand with carbon-
free electricity.
In line with our commitment to all human rights conventions as a signatory to the UN Global
Compact, we are committed to the seven UN Women’s Empowerment Principles. In March, we
signed the guiding principles on women’s empowerment and gender equity, further cementing the
Group’s Diversity, Equity & Inclusion commitment.
STRUCTURAL CHANGES
As of 1 June, Carlsberg Marston’s Brewing Company took over the Kronenbourg 1664 brand in the
UK, terminating Heineken’s licensee agreement.
The acquisition of Waterloo Brewing Ltd. in Canada was completed in Q1. The business has been
consolidated from March.
In July, the Group received the call option valuation related to CSAPL Holdings Pte Ltd’s 33%
shareholding in Carlsberg South Asia Pte Ltd – the holding company for the businesses in India
(100%) and Nepal (90%). The Carlsberg Group is satisfied with the valuation outcome and the call
option has been exercised. The put option related to the same shareholding has been referred to
arbitration. The timing of Carlsberg's acquisition of the shares in CSAPL remains uncertain.
Company announcement 32/2023
16 August 2023
Page 5 of 33
www.carlsberggroup.com
2023 EARNINGS EXPECTATIONS
On 15 August, we upgraded our earnings expectations for 2023. The upgrade was due to the
continued solid business performance year to date and based on our expectations for the remainder
of the year:
• Organic growth in operating profit of +4% to +7%.
Based on the spot rates at 14 August, we assume a translation impact on operating profit of around
DKK -900m for 2023.
Other relevant assumptions are:
• Financial expenses, excluding foreign exchange losses or gains, are expected to be around DKK
700m.
• Reported effective tax rate of around 21%.
• Capital expenditure at constant currencies of around DKK 5.0bn.
Forward-looking statements
Forward-looking statements are subject to risks and uncertainties that could cause the Group’s
actual results to differ materially from those expressed in the forward-looking statements.
Accordingly, forward-looking statements should not be relied on as a prediction of actual results.
Please see page 15 for the full forward-looking statements disclaimer.
GROUP FINANCIAL REVIEW
Change Change
H1 2022 Organic Acq., net FX 2023 Reported
Volumes (million hl)
Beer 52.0 0.6 % 0.2 % - 52.4 0.8 %
Other beverages 12.2 1.5 % 0.1 % - 12.4 1.6 %
Total volume 64.2 0.8 % 0.2 % - 64.8 1.0 %
DKK million
Revenue 35,447 11.2 % 0.5 % -5.1 % 37,788 6.6 %
Operating profit 6,442 5.2 % 0.0 % -7.8 % 6,272 -2.6 %
Operating margin (%) 18.2 16.6 -160bp
Beer volumes grew organically by 0.6% (Q2: -0.8%), driven by solid growth in Asia. Other beverage
volumes grew organically by 1.5% (Q2: +2.3%), and total volumes by 0.8% (Q2: -0.2%). The
acquisition impact related to the acquisition of Waterloo Brewing in Canada.
Revenue/hl increased by 10% (Q2: +9%), resulting in strong organic revenue growth of 11.2% (Q2:
+9.0%). The revenue/hl improvement was driven by the on-trade recovery in Q1, premium growth in
Asia and Central & Eastern Europe, and price increases across most markets.
Reported revenue grew by 6.6% (Q2: +4.2%). The adverse currency impact mainly related to the
Chinese, Laotian, Norwegian and Ukrainian currencies.
Gross profit increased organically by 7.8%. Cost of sales/hl increased organically by 13% due to
higher input and energy costs and salaries. Gross profit/hl increased organically by 7%, as the
higher revenue/hl offset the higher cost of sales/hl in absolute terms, but reported gross margin
declined by 160bp to 44.7%.
Company announcement 32/2023
16 August 2023
Page 6 of 33
www.carlsberggroup.com
We maintained our focus on costs, supporting our efforts to offset inflation and increase
investments in brands and activities. Operating expenses increased organically by 7.3% due to
higher sales and marketing expenses, while administrative expenses were flat. Total reported
operating expenses to revenue improved by 60bp to 28.9%.
Operating profit before depreciation, amortisation and impairment losses (EBITDA) grew by 2.7%
organically, but declined by 4.0% in reported terms due to the adverse currency impact.
Income from associates declined, mainly due to lower property income in Carlsberg Byen compared
with last year and certain one-off expenses in associates in Asia.
Operating profit grew organically by 5.2% thanks to the solid revenue/hl improvement, continued
cost focus and top-line growth in Asia more than offsetting the significant cost headwind from
higher input and energy costs and salaries. All three regions delivered organic operating profit
growth with Asia and Central & Eastern Europe the main drivers. A significant currency impact,
particularly from the Chinese, Laotian, Norwegian and Ukrainian currencies, meant the reported
operating profit declined by 2.6%. The reported operating margin development mirrored the gross
margin development, contracting by 160bp to 16.6%.
Reported net profit was DKK 3,495m (2022: DKK -5,276m). The reported net result in both years
was impacted by write-downs in the Russian business.
Adjusted net profit for continuing operations (adjusted for special items after tax) declined by 2.7%
to DKK 4,005m, as the organic operating profit growth and lower financial expenses were offset by
the adverse currency impact.
Adjusted earnings per share were DKK 34.7. Adjusted earnings per share for continuing operations
(excluding Russian operations held for sale) increased by 0.2% to DKK 29.3, supported by a lower
number of shares.
Return on invested capital (12-month average) improved by 30bp to 15.2% as a result of the lower
effective tax rate and better trade working capital offsetting the negative currency impact on
operating profit. ROIC excluding goodwill was 41.2% (2022: 40.7%).
Net interest-bearing debt was DKK 22,364m (2022: DKK 18,090m), impacted by the acquisition of
Waterloo Brewing in Canada, cash returns to shareholders in H1 in the form of the share buy-back
programme (DKK 1,289m), and dividends to shareholders and non-controlling interests (DKK 4.6bn).
For continuing operations, net interest-bearing debt/EBITDA was 1.46x (1.23x at year-end 2022).
Company announcement 32/2023
16 August 2023
Page 7 of 33
www.carlsberggroup.com
REGIONAL PERFORMANCE
WESTERN EUROPE
Change Change
H1 2022 Organic Acq., net FX 2023 Reported
Volumes (million hl)
Beer 15.0 -3.9 % 0.0 % - 14.3 -3.9 %
Other beverages 7.1 1.7 % 0.0 % - 7.3 1.7 %
Total 22.1 -2.1 % 0.0 % - 21.6 -2.1 %
DKK million
Revenue 17,228 9.2 % 0.0 % -2.5 % 18,382 6.7 %
Operating profit 2,585 1.4 % 0.0 % -2.7 % 2,550 -1.3 %
Operating margin (%) 15.0 13.9 -110bp
Total volumes declined organically by 2.1% (Q2: -2.9%), with some markets impacted by the
challenging consumer environment and bad weather at the beginning of Q2. We gained volume and
value market share across the region. Other beverages grew by 1.7% as a result of good soft drinks
performance in the Nordics.
For the half year, revenue/hl increased organically by 12% (Q2: +11%) due to a positive channel mix
in Q1 from last year’s on-trade restrictions, price increases and a positive country mix. Organic
revenue growth was 9.2%. Organic revenue growth in Q2 was less strong at 7.6% due to the
aforementioned Q1 year-on-year benefit from the on-trade restrictions in 2022. Reported revenue
growth was 6.7% (Q2: +5.5%), with the adverse currency impact coming from the Swedish,
Norwegian and UK currencies.
The region was able to offset the significant commodity, packaging and energy cost increases
through higher revenue/hl and continued cost focus, and operating profit grew organically by 1.4%.
Reported operating profit declined by 1.3% due to a negative currency impact from the Norwegian
and Swedish currencies. As a consequence of the inflationary pressure, operating profit margin
declined by 110bp to 13.9%.
MARKET COMMENTS
The Nordics delivered solid volume growth of low single-digit percentages, mainly driven by good
performance for the soft drinks portfolio. In Sweden, growth was driven by premium, alcohol-free
brews and soft drinks. In Norway, the Somersby brand and the soft drinks portfolio did particularly
well. In Finland, our premium beer volumes grew, driven by 1664 Blanc and Brooklyn, while
mainstream volumes were under pressure. Soft drinks developed positively. In Denmark, we
strengthened our market share, supported by solid performance for Tuborg and growth for alcohol-
free brews and Beyond Beer products.
In France, consumer off-take was impacted by high inflation and bad weather. While our volumes
declined by low single-digit percentages, our market share developed favourably due to good
results for our local premium portfolio, Kronenbourg 1664 and Grimbergen.
In Switzerland, 1664 Blanc was relaunched with initially good results. We saw solid growth for our
local premium brand Valaisanne, Grimbergen and alcohol-free brews, but total volumes declined by
low single-digit percentages.
The Polish beer market declined by 7% (YTD May) as consumers were impacted by declining
disposable income. In addition, the mainstream category took share from premium and flavoured
Company announcement 32/2023
16 August 2023
Page 8 of 33
www.carlsberggroup.com
beers. Our volumes declined by high single-digit percentages, as we had to take significant price
increases to offset the considerable inflation in our cost base.
In the UK, the weak consumer sentiment impacted the beer market, which was down by an
estimated 6-7% (YTD May). We outperformed the market in both the on-trade and off-trade
channels. Our volumes were down by low single-digit percentages, but with a solid end to the half-
year due to very warm weather in June. We saw good growth for brands such as Brooklyn, Poretti
and Somersby.
ASIA
Change Change
H1 2022 Organic Acq., net FX 2023 Reported
Volumes (million hl)
Beer 23.4 5.3 % 0.0 % - 24.7 5.3 %
Other beverages 3.4 1.4 % 0.0 % - 3.4 1.4 %
Total 26.8 4.8 % 0.0 % - 28.1 4.8 %
DKK million
Revenue 12,670 11.7 % 0.0 % -8.7 % 13,051 3.0 %
Operating profit 3,257 8.1 % 0.0 % -10.8 % 3,168 -2.7 %
Operating margin (%) 25.7 24.3 -140bp
Our Asia region continued its strong delivery with another set of good results. Total volumes grew
by 4.8% (Q2: +4.7%) with particularly good performance in China, Laos, Vietnam and India.
Revenue grew organically by 11.7% (Q2: +11.1%). Revenue/hl increased organically by 7% (Q2: +6%)
due to solid growth for international premium brands and price increases. Reported revenue growth
was 3.0% (Q2: +0.9%), impacted by the weaker Laotian and Chinese currencies.
Operating profit increased organically by 8.1%, while adverse foreign exchange movements, mainly
in China and Laos, led to a reported decline of 2.7%. Despite the strong top-line growth, the
operating margin declined by 140bp to 24.3% due to a significant increase in sales and marketing
investments, particularly in Vietnam.
MARKET COMMENTS
In China, our business continued to deliver good progress. Increased domestic travel supported
growth in our strongholds in the western part of the country. Early in the year, we expanded our Big
Cities to 91 cities, where volume growth continued. Carlsberg, Tuborg and key local mainstream
brands such as Chongqing and Dali grew. Despite increased price competition, 1664 Blanc grew in
Q2, but volumes for the half year were impacted by soft volumes in the night-life channel in Q1.
Our volumes in India grew by mid-single-digit percentages in a market benefiting from a strong
economy, increased tourism and warm weather. We grew less than the market due to capacity
constraints. The growth was mainly driven by the Carlsberg brand.
Our volumes in Vietnam grew by low double-digit percentages. While the beer market was flat YTD
June, the market weakened considerably during Q2 because of the macroeconomic slowdown.
Consequently, our volume growth slowed down in Q2. Our international premium brands – 1664
Blanc, Carlsberg and Tuborg – delivered strong growth, although from a low base. Our local
mainstream brand Huda also continued to grow.
Company announcement 32/2023
16 August 2023
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www.carlsberggroup.com
In Laos, volumes grew by double-digit percentages driven by all categories: beer, soft drinks and
water. We made significant price increases to offset the significant inflationary pressure. Our
premium portfolio, including 1664 Blanc, Somersby and the Beerlao crafty line, did particularly well.
Beer volumes grew in Cambodia. Total volumes were impacted by weaker energy and soft drinks
volumes and declined by low double-digit percentages.
Volumes in Malaysia and Singapore declined due to weakening consumer spending and tough
comparables in H1 2022.
CENTRAL & EASTERN EUROPE
Change Change
H1 2022 Organic Acq., net FX 2023 Reported
Volumes (million hl)
Beer 13.6 -2.3 % 0.7 % - 13.4 -1.6 %
Other beverages 1.7 1.3 % 0.3 % - 1.7 1.6 %
Total 15.3 -1.9 % 0.6 % - 15.1 -1.3 %
DKK million
Revenue 5,542 16.3 % 3.0 % -4.7 % 6,349 14.6 %
Operating profit 1,149 7.6 % -0.2 % -7.3 % 1,150 0.1 %
Operating margin (%) 20.7 18.1 -260bp
The beer markets in Central & Eastern Europe were impacted by bad weather in Q2 and high
inflation, impacting consumer off-take. Consequently, our volumes declined organically by 1.9% (Q2:
-3.6%). We gained market share in most markets in the region.
Revenue grew organically by 16.3% (Q2: +9.1%). The strong revenue/hl organic growth of 19% (Q2:
+13%) was driven by price increases, supported by easy comparables in Ukraine, a positive product
and channel mix, and a positive country mix due to lower volumes in the Turkish licence market in
Q1 following the earthquake in February.
Operating profit grew organically by 7.6% due to very good cost control and the strong increase in
revenue/hl, which more than offset significant inflation in the cost base. Reported operating profit
growth was 0.1%, mainly because of the depreciation of the Ukrainian currency. The operating
margin was 18.1%, a decline of 260bp.
MARKET COMMENTS
In Ukraine, the health and safety of our colleagues remain our first priority. Volume growth
benefited from easy comparables in Q1, while volumes in Q2 were impacted by intensified
competitive activities and bad weather. Revenue/hl improved strongly, mainly due to high inflation
and consequent price increases. We saw very strong growth for our international premium brands
such as Tuborg, 1664 Blanc and Grimbergen, and good growth for the local power brand Lvivske.
Our markets in south-eastern Europe saw mixed results. Volumes grew in Greece and Serbia while
in other markets, such as Italy, Bulgaria and Croatia, volumes were impacted by inflation affecting
consumer behaviour and bad weather. Revenue/hl showed strong improvement across all markets
thanks to price increases and a positive mix, supported by international premium brands, including
Tuborg, Carlsberg and 1664 Blanc.
In our export & licence business, we saw good growth for the premium portfolio, particularly for
1664 Blanc and Brooklyn.
Company announcement 32/2023
16 August 2023
Page 10 of 33
www.carlsberggroup.com
CENTRAL COSTS (NOT ALLOCATED)
Central costs, net, were DKK 582m (2022: DKK 582m). Central costs are incurred for ongoing
support of the Group’s overall operations and strategic development. In particular, they cover the
costs of running central functions, including marketing.
OTHER ACTIVITIES (NON-BEVERAGE)
The operation of the Carlsberg Research Laboratory and the non-controlling holding in the
Carlsberg Byen company in Copenhagen are reported separately from the beverage activities. The
non-beverage activities generated DKK -14m (2022: DKK +33m). The decline compared with last
year was mainly due to 2022 being positively impacted by disposals of properties in Carlsberg Byen.
COMMENTS ON THE FINANCIAL STATEMENTS
ACCOUNTING POLICIES
The present interim report has been prepared in accordance with IAS 34 Interim Financial Reporting,
as adopted by the EU, and Danish regulations governing the presentation of interim reports by
listed companies.
Except for the changes described below, the consolidated financial statements have been prepared
using the same accounting policies for recognition and measurement as those applied to the
consolidated financial statements for 2022.
As of 1 January 2023, the following amendments came into force:
• Amendments to IAS 1 Presentation of Financial Statements; IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors; IAS 12 Income Taxes; and IFRS 17 Insurance Contracts, effective
for financial years beginning on or after 1 January 2023.
The above-mentioned amendments did not have any impact on the Group’s accounting policies.
INCOME STATEMENT
Please see pages 6-7 for a review of operating profit.
Net special items (pre-tax) amounted to DKK -169m (2022: DKK -865m). In particular, special items
were impacted by the cost of terminating the Kronenbourg 1664 licensee agreement in the UK. A
specification of special items is included in note 4.
Financial items, net, amounted to DKK -332m against DKK -508m in 2022. The decline year on year
was the result of significant foreign exchange losses last year. Excluding foreign exchange gains and
losses, financial items, net, amounted to DKK -311m (2022: DKK -230m). The increase was mainly
driven by other financials, as net interests was DKK 4m higher than in 2022. A specification of net
financial items is included in note 5.
Tax totalled DKK -1,212m against DKK-1,115m in 2022. The effective tax rate was 21.0% versus
22.0% in H1 2022.
The net result from Russian operations held for sale amounted to DKK -404m (2022: DKK
-8,618m). A specification of the net result from the Russian operations is included in note 9.
Non-controlling interests were DKK 660m (2022: DKK 612m).
The Carlsberg Group’s share of consolidated profit (net profit) was DKK 3,495m (2022: DKK
-5,276m). Adjusted net profit for continuing operations (adjusted for special items after tax) declined
Company announcement 32/2023
16 August 2023
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by 2.7% to DKK 4,005m, as the organic operating profit growth and lower financial expenses were
offset by the adverse currency impact.
STATEMENT OF FINANCIAL POSITION
ASSETS
Total assets amounted to DKK 121.0bn at 30 June 2023 (31 December 2022: DKK 115.3bn).
Total non-current assets amounted to DKK 80.7bn at 30 June 2023 (31 December 2022: DKK
81.1bn). Intangible assets amounted to DKK 49.0bn (31 December 2022: DKK 49.2bn), property,
plant and equipment totalled DKK 23.6bn (31 December 2022: DKK 23.7bn), and financial assets
were DKK 8.1bn (31 December 2022: DKK 8.2bn).
Current assets were impacted by seasonality. Inventories and trade receivables amounted to DKK
14.6bn, an increase of DKK 3.8bn from 31 December 2022. Cash and cash equivalents amounted to
DKK 11.2bn (31 December 2022: DKK 8.2bn). The increase of DKK 3.1bn was driven by the free cash
flow of DKK 3.8bn and the EUR 750m term loan obtained in May, partly offset by the dividend
payout to shareholders and share buy-back of DKK -5.0bn.
Assets in disposal group held for sale (DKK 10.1bn) related to the net assets in the Russian business.
EQUITY AND LIABILITIES
Total equity amounted to DKK 30.7bn at 30 June 2023 (31 December 2022: DKK 34.7bn), DKK
28.3bn of which was attributed to shareholders in Carlsberg A/S and DKK 2.4bn to non-controlling
interests.
The net change in equity of DKK -4.0bn is mainly explained by the profit for the period of DKK
4.2bn, foreign exchange adjustments of DKK -2.5bn, total dividends paid of DKK -4.6bn and share
buy-back of DKK -1.3bn.
Total liabilities increased to DKK 90.3bn against DKK 80.6bn at 31 December 2022, primarily due to
seasonality and higher current borrowings.
Long- and short-term borrowings amounted to DKK 34.8bn (31 December 2022: DKK 28.6bn): long-
term borrowings were DKK 21.2bn (31 December 2022: DKK 22.9bn) and short-term borrowings
were DKK 13.6bn (31 December 2022: DKK 5.8bn). The increase in short-term borrowings was due
to the reclassification of a EUR 1bn bond, which matures in May 2024, while long-term borrowings
were impacted by the issuance of a EUR 750m bond in May.
Tax liabilities, retirement benefit obligations etc. were DKK 8.4bn (31 December 2022: DKK 9.0bn).
The decrease was mainly due to reclassification of a provision related to the conclusion of a
competition case in Germany to other payables and lower pension liabilities.
Current liabilities excluding short-term borrowings increased to DKK 47.1bn (31 December 2022: DKK
43.0bn), impacted by normal seasonality. The most significant increase was trade payables, which
rose by DKK 3.1bn compared with 31 December 2022.
Liabilities in disposal group held for sale totalled DKK 4.4bn (31 December 2022: DKK 4.1bn) and
related to the Russian business.
CASH FLOW
Free cash flow amounted to DKK 3,784m versus DKK 7,294m in 2022. The development was mainly
due to the impact of adverse foreign exchange movements on EBITDA, a small negative
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16 August 2023
Page 12 of 33
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contribution from the change in total working capital compared with a positive contribution in 2022
and the acquisition of Waterloo Brewing in Canada.
Net cash flow amounted to DKK 3,484m (2022: DKK 5,046m). The change compared with 2022
was due to the lower free cash flow and higher dividend payment, partly offset by the issuance of a
EUR 750m bond in May and a more limited share buy-back compared with 2022.
CASH FLOW FROM OPERATING ACTIVITIES
Cash flow from operating activities amounted to DKK 6,108m against DKK 8,380m in 2022.
EBITDA was DKK 8,229m (2022: DKK 8,570m). The decline was due to adverse foreign exchange
movements, with organic EBITDA up by 2.7%.
The change in total working capital was DKK -105m (2022: DKK 2,085m). Average trade working
capital to revenue (MAT) remained strong at -21.0%. The change in trade working capital at 30
June 2023 was DKK 685m (2022: DKK 2,707m). The change in other working capital was DKK
-790m (2022: DKK -622m), impacted by other payables related to pensions and VAT.
Restructuring costs and other special items amounted to DKK -294m (2022: DKK -97m), impacted
by the cost of terminating the Kronenbourg 1664 licensee agreement in the UK. Net interest etc.
paid amounted to DKK -349m (2022: DKK -666m). The decline was due to the settlement of
financial instruments in 2022. Corporation tax paid was DKK -1,130m (2022: DKK -1,080m).
CASH FLOW FROM INVESTING ACTIVITIES
Cash flow from investing activities was DKK -2,324m against DKK -1,086m in 2022.
Operational investments totalled DKK -1,762m (2022: DKK -1,380m). Acquisition of property, plant
and equipment and intangible assets amounted to DKK -1,792m (2022: DKK -1,606m) and included
investments in a new brewery in China.
Total financial investments amounted to DKK -562m (2022: DKK +294m). The change versus 2022
was mainly due to the acquisition of Waterloo Brewing in Canada.
FINANCING
At 30 June 2023, gross financial debt amounted to DKK 34.8bn and net interest-bearing debt to
DKK 22.4bn. The difference of DKK 12.4bn mainly comprised cash and cash equivalents of DKK
11.2bn.
Net interest-bearing debt/EBITDA was 1.46x (1.23x at year-end 2022).
Of the gross financial debt, 61% (DKK 21.2bn) was long term, i.e. with maturity of more than one
year from 30 June 2023. At the end of June 2023, the duration was 3.8 years.
SUBSEQUENT EVENTS
On 23 June, Carlsberg announced the conditional sale of Baltika Breweries in Russia.
On 16 July, the Russian government issued a presidential decree, temporarily transferring the
management of our Russian business – Baltika Breweries – to the Russian Federal Agency for State
Property Management. According to the presidential decree, Carlsberg retains title to the shares in
Baltika Breweries, but otherwise no longer has any control over, or influence on, the management
of the business. It is unclear what direct and indirect implications the transfer will have on the sales
process.
Company announcement 32/2023
16 August 2023
Page 13 of 33
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The Carlsberg Group has been operating in accordance with local rules and regulations in Russia
and has protested to the Russian government against this highly unexpected and unwarranted
intervention. We will continue to investigate the situation and assess all options, including legal
steps, and take action to protect our assets and the value of the business.
As a result of the presidential decree, Baltika Breweries will be deconsolidated from July. This will
result in non-cash reclassification adjustments to the income statement of accumulated currency
translation losses of DKK 41.9bn and hedge losses of DKK 0.5bn in H2 2023. There will be no
impact on the Group’s total equity. Further information can be found on pages 32-33 in this
announcement.
CHANGES TO THE EXECUTIVE COMMITTEE
CEO Cees ’t Hart will retire from Carlsberg on 31 August. He is succeeded by Jacob Aarup-Andersen,
who will join Carlsberg on 1 September.
SHARE BUY-BACK
On 27 April, the Group launched the first quarterly share buy-back programme of 2023. This was
concluded on 4 August, when the Company had bought a total of 925,940 shares at a total value of
DKK 1bn.
Based on its continued strong financial position, the Group will today initiate a new quarterly buy-
back programme, with the intention of buying back Carlsberg B shares amounting to DKK 1bn up
until 20 October.
The share buy-back programme will be executed in accordance with Article 5 of Regulation No
596/2014 of the European Parliament and Council of 16 April 2014 (MAR) and the Commission
Delegated Regulation (EU) 2016/1052, also referred to as the Safe Harbour Regulation. Carlsberg is
entitled to suspend or terminate the programme at any time. Any such decision will be disclosed to
the public in a Company announcement.
The purpose of the programme is primarily to reduce the Company’s share capital and, in addition,
meet obligations relating to the Group’s share-based incentive programmes. At the Annual General
Meeting in 2024, the Supervisory Board intends to propose that shares not used for hedging of the
incentive programmes be cancelled.
The maximum number of shares that may be repurchased on a single business day is 25% of the
average daily trading volume of Carlsberg B shares over the 20 trading days prior to the date of
purchase at the trading venue on which the purchase is carried out. A maximum of 12 million
Carlsberg B shares can be bought during the trading period. The Group will disclose the transactions
under the share buy-back programme at least once every seven trading days.
The Carlsberg Foundation will continue to participate on a 30.33% pro rata basis regarding the
shares purchased in the share buy-back programme as separate transactions outside Safe Harbour.
The Foundation will transfer shares on a weekly basis at a price equal to the volume-weighted
average weekly share price of B shares repurchased by Carlsberg under the share buy-back
programme. The price shall not deviate by more than 10% from the price quoted on Nasdaq
Copenhagen at the time of purchase.
The Carlsberg Group has appointed Nordea Danmark, filial af Nordea Bank Abp, Finland
(“Nordea”), as lead manager to execute the programme independently and without influence from
Company announcement 32/2023
16 August 2023
Page 14 of 33
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Carlsberg, as required by the Safe Harbour Regulation. Under the agreement, Nordea will
repurchase B shares during the trading period, which runs from 16 August to 20 October 2023.
FINANCIAL CALENDAR
The financial year follows the calendar year, and the following schedule has been set for the
remainder of 2023:
27 October Q3 trading statement
FORWARD-LOOKING STATEMENTS
This Company announcement contains forward-looking statements, including, but not limited to,
guidance, expectations, strategies, objectives and statements regarding future events or prospects
with respect to the Group’s future financial and operating results. Forward-looking statements
include, without limitation, any statement that may predict, forecast, indicate or imply future results,
performance or achievements, and may contain words such as "expect", "estimate", "intend", "will be",
"will continue", "will result", "could", "may", "might" or any variations of such words or other words
with similar meanings. Forward-looking statements are subject to risks and uncertainties that could
cause the Group’s actual results to differ materially from the results discussed in such forward-
looking statements. Prospective information is based on management’s then current expectations or
forecasts. Such information is subject to the risk that such expectations or forecasts, or the
assumptions underlying such expectations or forecasts, may change. The Group assumes no
obligation to update any such forward-looking statements to reflect actual results, changes in
assumptions or changes in other factors affecting such forward-looking statements.
Some important risk factors that could cause the Group’s actual results to differ materially from
those expressed in its forward-looking statements include, but are not limited to: economic and
political uncertainty (including interest rates and exchange rates), financial and regulatory
developments, demand for the Group’s products, increasing industry consolidation, competition from
other breweries, the availability and pricing of materials used by the Group, cost of energy,
production- and distribution-related issues, IT failures, market-driven price reductions, litigation,
environmental issues and other unforeseen factors. The nature of the Group’s business means that
risk factors and uncertainties may arise, and it may not be possible for management to predict all
such risk factors, nor to assess the impact of all such risk factors on the Group’s business or the
extent to which any individual risk factor, or combination of factors, may cause results to differ
materially from those contained in any forward-looking statement. Accordingly, forward-looking
statements should not be relied on as a prediction of actual results.
Company announcement 32/2023
16 August 2023
Page 15 of 33
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Executive Board of Carlsberg A/S
Supervisory Board of Carlsberg A/S
Company announcement 32/2023
16 August 2023
Page 16 of 33
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FINANCIAL STATEMENTS
Income statement
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Note 1 Segment reporting by region (beverages)
Note 2 Segment reporting by activity
Note 3 Segment reporting by half year
Note 4 Special items
Note 5 Net financial expenses
Note 6 Debt and credit facilities
Note 7 Net interest-bearing debt
Note 8 Acquisitions and disposals
Note 9 Discontinued operations and disposal group held for sale
Company announcement 32/2023
16 August 2023
Page 17 of 33
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INCOME STATEMENT
DKK million
H1
2023
H1
2022 2022
Revenue 37,788 35,447 70,265
Cost of sales -20,906 -19,046 -38,198
Gross profit 16,882 16,401 32,067
Sales and distribution expenses -8,896 -8,419 -17,337
Administrative expenses -2,037 -2,055 -4,229
Other operating activities, net 37 38 68
Share of profit after tax of associates 286 477 901
Operating profit before special items 6,272 6,442 11,470
Special items, net -169 -865 -784
Financial income 149 118 347
Financial expenses -481 -626 -1,072
Profit before tax 5,771 5,069 9,961
Income tax -1,212 -1,115 -1,778
Profit from continuing operations 4,559 3,954 8,183
Net result from Russian operations held for sale -404 -8,618 -8,075
Profit for the period 4,155 -4,664 108
Attributable to
Non-controlling interests 660 612 1,171
Shareholders in Carlsberg A/S (net profit) 3,495 -5,276 -1,063
DKK
Earnings per share of DKK 20 (EPS) 25.5 -37.4 -7.6
Continuing operations 28.5 23.7 50.1
Russian operations held for sale -3.0 -61.1 -57.7
Diluted earnings per share of DKK 20 (EPS-D) 25.5 -37.4 -7.6
Continuing operations 28.4 23.7 50.0
Russian operations held for sale -2.9 -61.1 -57.6
Company announcement 32/2023
16 August 2023
Page 18 of 33
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STATEMENT OF COMPREHENSIVE INCOME
DKK million
H1
2023
H1
2022 2022
Profit for the period 4,155 -4,664 108
Other comprehensive income
Retirement benefit obligations -47 191 586
Share of other comprehensive income in associates - 2 -
Income tax - -2 -73
Items that will not be reclassified to the income statement -47 191 513
Foreign exchange adjustments of foreign entities -2,516 627 -3,926
Fair value adjustments of hedging instruments 142 -1,314 -759
Income tax -12 138 100
Items that will be reclassified to the income statement -2,386 -549 -4,585
Other comprehensive income -2,433 -358 -4,072
Total comprehensive income 1,722 -5,022 -3,964
Attributable to
Non-controlling interests 500 218 603
Shareholders in Carlsberg A/S 1,222 -5,240 -4,567
Total comprehensive income for the period arises from
Continuing operations 3,543 4,035 6,944
Russian operations held for sale -1,821 -9,057 -10,908
Total comprehensive income 1,722 -5,022 -3,964
Company announcement 32/2023
16 August 2023
Page 19 of 33
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STATEMENT OF FINANCIAL POSITION
DKK million 30 June 2023 30 June 2022 31 Dec. 2022
ASSETS
Intangible assets 49,029 50,248 49,223
Property, plant and equipment 23,591 23,669 23,679
Financial assets 8,097 7,859 8,190
Total non-current assets 80,717 81,776 81,092
Inventories 6,700 5,674 5,718
Trade receivables 7,923 7,382 5,067
Other receivables 4,344 3,623 3,683
Cash and cash equivalents 11,237 13,287 8,163
Current assets 30,204 29,966 22,631
Assets in disposal group held for sale 10,085 16,523 11,618
Total current assets 40,289 46,489 34,249
Total assets 121,006 128,265 115,341
EQUITY AND LIABILITIES
Equity, shareholders in Carlsberg A/S 28,286 34,968 31,902
Non-controlling interests 2,429 2,737 2,820
Total equity 30,715 37,705 34,722
Borrowings 21,175 22,705 22,865
Tax liabilities, provisions, retirement benefit obligations etc 8,395 9,699 9,007
Total non-current liabilities 29,570 32,404 31,872
Borrowings 13,620 10,019 5,781
Trade payables 25,054 24,373 21,917
Deposits on returnable packaging materials 1,905 1,839 1,627
Other liabilities 15,754 15,022 15,322
Current liabilities 56,333 51,253 44,647
Liabilities in disposal group held for sale 4,388 6,903 4,100
Total current liabilities 60,721 58,156 48,747
Total liabilities 90,291 90,560 80,619
Total equity and liabilities 121,006 128,265 115,341
The Russian operations are presented as assets/liabilities in disposal group held for sale. For more information, see note 9.
Company announcement 32/2023
16 August 2023
Page 20 of 33
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STATEMENT OF CHANGES IN EQUITY
DKK million Shareholders in Carlsberg A/S
2023
Share
capital
Currency
translation¹
Hedging
reserves¹
Total
reserves
Retained
earnings Total
Non-
controlling
interests
Total
equity
Equity at 1 January 2,837 -40,889 -822 -41,711 70,776 31,902 2,820 34,722
Profit for the period - - - - 3,495 3,495 660 4,155
Other comprehensive income - -2,263 35 -2,228 -45 -2,273 -160 -2,433
Total comprehensive income for the period - -2,263 35 -2,228 3,450 1,222 500 1,722
Cancellation of treasury shares -90 - - - 90 - - -
Share-based payments - - - - 58 58 - 58
Dividends paid to shareholders - - - - -3,695 -3,695 -891 -4,586
Share buy-back - - - - -1,289 -1,289 - -1,289
Non-controlling interests - - - - 88 88 - 88
Total changes in equity -90 -2,263 35 -2,228 -1,298 -3,616 -391 -4,007
Equity at 30 June 2,747 -43,152 -787 -43,939 69,478 28,286 2,429 30,715
¹ The currency translation and hedging reserves within equity related to Russian operations held for sale represent losses of DKK 41.9 bn and DKK 0.5 bn respectively (30 June 2022: losses of DKK 36.3 bn and DKK 0.4 bn).
Upon completion of the disposal, the accumulated currency translation and hedging reserves within equity related to the Russian operations will be reclassified from equity to the income statement and included in the
net result from the Russian operations held for sale.
DKK million Shareholders in Carlsberg A/S
2022
Share
capital
Currency
translation¹
Hedging
reserves¹
Total
reserves
Retained
earnings Total
Non-
controlling
interests
Total
equity
Equity at 1 January 2,905 -37,198 -493 -37,691 80,283 45,497 3,259 48,756
Profit for the period - - - - -5,276 -5,276 612 -4,664
Other comprehensive income - 639 -794 -155 191 36 -394 -358
Total comprehensive income for the period - 639 -794 -155 -5,085 -5,240 218 -5,022
Cancellation of treasury shares -68 - - - 68 - - -
Share-based payments - - - - 67 67 - 67
Dividends paid to shareholders - - - - -3,389 -3,389 -740 -4,129
Share buy-back - - - - -1,967 -1,967 - -1,967
Total changes in equity -68 639 -794 -155 -10,306 -10,529 -522 -11,051
Equity at 30 June 2,837 -36,559 -1,287 -37,846 69,977 34,968 2,737 37,705
Company announcement 32/2023
16 August 2023
Page 21 of 33
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STATEMENT OF CASH FLOWS
DKK million
H1
2023
H1
2022 2022
Operating profit before special items 6,272 6,442 11,470
Depreciation, amortisation and impairment losses 1,957 2,128 4,187
Operating profit before depreciation, amortisation and impairment losses 8,229 8,570 15,657
Other non-cash items -243 -432 -867
Change in trade working capital 685 2,707 1,908
Change in other working capital -790 -622 -465
Restructuring costs and other special items paid -294 -97 -171
Interest etc. received 130 32 213
Interest etc. paid -479 -698 -1,223
Income tax paid -1,130 -1,080 -2,103
Cash flow from operating activities 6,108 8,380 12,949
Acquisition of property, plant and equipment and intangible assets -1,792 -1,606 -4,018
Disposal of property, plant and equipment and intangible assets 50 151 412
Change in on-trade loans -20 75 129
Total operational investments -1,762 -1,380 -3,477
Free operating cash flow 4,346 7,000 9,472
Acquisition and disposal of subsidiaries, net¹ -802 - -
Acquisition and disposal of associates, net - -31 -48
Acquisition and disposal of financial investments, net -1 - -20
Change in financial receivables -14 53 196
Dividends received 255 272 282
Total financial investments -562 294 410
Other investments in real estate - - 2
Total other activities - - 2
Cash flow from investing activities -2,324 -1,086 -3,065
Free cash flow 3,784 7,294 9,884
Shareholders in Carlsberg A/S -3,695 -3,389 -3,389
Share buy-back -1,289 -1,967 -4,400
Non-controlling interests -891 -740 -1,042
External financing 5,575 3,848 -1,128
Cash flow from financing activities -300 -2,248 -9,959
Net cash flow from continuing operations 3,484 5,046 -75
Net cash flow from Russian operations held for sale² 2,026 515 1,771
Net cash flow 5,510 5,561 1,696
Cash and cash equivalents at 1 January 8,163 8,344 8,344
Foreign exchange adjustment of cash and cash equivalents 179 391 -683
Cash and cash equivalents included in disposal group held for sale² -2,627 -1,009 -1,194
Cash and cash equivalents at period-end³ 11,225 13,287 8,163
1
See note 8.
2
See note 9.
³ Cash and cash equivalents less bank overdrafts.
Company announcement 32/2023
16 August 2023
Page 22 of 33
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NOTE 1 (PAGE 1 OF 2)
SEGMENT REPORTING BY REGION
Q2
2023
Q2
2022
H1
2023
H1
2022 2022
Beer (million hl)
Western Europe 8.4 8.9 14.3 15.0 29.9
Asia 12.8 12.2 24.7 23.4 42.0
Central & Eastern Europe 8.1 8.4 13.4 13.6 29.1
Total 29.3 29.5 52.4 52.0 101.0
Other beverages (million hl)
Western Europe 4.1 4.1 7.3 7.1 14.5
Asia 1.8 1.7 3.4 3.4 6.3
Central & Eastern Europe 1.0 1.0 1.7 1.7 3.6
Total 6.9 6.8 12.4 12.2 24.4
Revenue (DKK million)
Western Europe 10,831 10,269 18,382 17,228 34,888
Asia 6,704 6,647 13,051 12,670 23,682
Central & Eastern Europe 3,847 3,591 6,349 5,542 11,679
Not allocated 1 4 6 7 16
Beverages, total 21,383 20,511 37,788 35,447 70,265
Non-beverage - - - - -
Total 21,383 20,511 37,788 35,447 70,265
Operating profit before depreciation, amortisation and special items (EBITDA, DKK million)
Western Europe 3,425 3,447 6,801
Asia 3,844 4,172 7,020
Central & Eastern Europe 1,467 1,449 2,884
Not allocated -491 -536 -1,221
Beverages, total 8,245 8,532 15,484
Non-beverage -16 38 173
Total 8,229 8,570 15,657
Operating profit before special items (DKK million)
Western Europe 2,550 2,585 4,966
Asia 3,168 3,257 5,435
Central & Eastern Europe 1,150 1,149 2,282
Not allocated -582 -582 -1,370
Beverages, total 6,286 6,409 11,313
Non-beverage -14 33 157
Total 6,272 6,442 11,470
Operating margin (%)
Western Europe 13.9 15.0 14.2
Asia 24.3 25.7 22.9
Central & Eastern Europe 18.1 20.7 19.5
Not allocated - - -
Beverages, total 16.6 18.1 16.1
Non-beverage - - -
Total 16.6 18.2 16.3
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16 August 2023
Page 23 of 33
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NOTE 1 (PAGE 2 OF 2)
SEGMENT REPORTING BY REGION
DKK million
30 June
2023
30 June
2022 2022
Invested capital, period-end
Western Europe 34,626 34,562 34,098
Asia 17,690 19,412 18,910
Central & Eastern Europe 8,321 7,019 6,625
Not allocated 50 -1,035 -474
Beverages, total 60,687 59,958 59,159
Non-beverage 929 1,021 1,052
Total 61,616 60,979 60,211
Invested capital excl. goodwill, period-end
Western Europe 14,258 14,277 13,857
Asia 3,263 3,245 3,652
Central & Eastern Europe 4,780 4,071 3,671
Not allocated 50 -1,035 -474
Beverages, total 22,351 20,558 20,706
Non-beverage 929 1,021 1,052
Total 23,280 21,579 21,758
Return on invested capital, ROIC (%), 12-month average
Western Europe 11.1 11.4 11.1
Asia 21.7 21.6 20.9
Central & Eastern Europe 25.9 26.7 27.7
Not allocated - - -
Beverages, total 14.9 15.2 15.2
Non-beverage - - -
Total 15.2 14.9 15.2
Return on invested capital excl. goodwill (%), 12-month average
Western Europe 26.6 26.0 26.2
Asia 116.0 130.4 112.4
Central & Eastern Europe 45.5 51.2 49.7
Not allocated - - -
Beverages, total 41.8 42.5 43.0
Non-beverage - - -
Total 41.2 40.7 41.6
Company announcement 32/2023
16 August 2023
Page 24 of 33
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NOTE 2
SEGMENT REPORTING BY ACTIVITY
H1 2023 H1 2022
DKK million Beverages
Non-
beverages Total Beverages
Non-
beverages Total
Revenue 37,788 - 37,788 35,447 - 35,447
Operating profit before special items 6,286 -14 6,272 6,409 33 6,442
Special items, net -154 -15 -169 -875 10 -865
Financial items, net -326 -6 -332 -509 1 -508
Profit before tax 5,806 -35 5,771 5,025 44 5,069
Income tax -1,217 5 -1,212 -1,104 -11 -1,115
Profit from continuing operations 4,589 -30 4,559 3,921 33 3,954
Net result from Russian operations held for sale -404 - -404 -8,618 - -8,618
Profit for the period 4,185 -30 4,155 -4,697 33 -4,664
Attributable to:
Non-controlling interests 660 - 660 612 - 612
Shareholders in Carlsberg A/S (net profit) 3,525 -30 3,495 -5,309 33 -5,276
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16 August 2023
Page 25 of 33
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NOTE 3
SEGMENT REPORTING BY HALF-YEAR
DKK million
H1
2023
H1
2022 2022
Revenue
Western Europe 18,382 17,228 34,888
Asia 13,051 12,670 23,682
Central & Eastern Europe 6,349 5,542 11,679
Not allocated 6 7 16
Beverages, total 37,788 35,447 70,265
Non-beverages - - -
Total 37,788 35,447 70,265
Operating profit before special items
Western Europe 2,550 2,585 4,966
Asia 3,168 3,257 5,435
Central & Eastern Europe 1,150 1,149 2,282
Not allocated -582 -582 -1,370
Beverages, total 6,286 6,409 11,313
Non-beverages -14 33 157
Total 6,272 6,442 11,470
Special items, net -169 -865 -784
Financial items, net -332 -508 -725
Profit before tax 5,771 5,069 9,961
Income tax -1,212 -1,115 -1,778
Profit from continuing operations 4,559 3,954 8,183
Net result from Russian operations held for sale -404 -8,618 -8,075
Profit for the period 4,155 -4,664 108
Attributable to:
Non-controlling interests 660 612 1,171
Shareholders in Carlsberg A/S (net profit) 3,495 -5,276 -1,063
Company announcement 32/2023
16 August 2023
Page 26 of 33
www.carlsberggroup.com
NOTE 4
Special items
DKK million
H1
2023
H1
2022 2022
Special items, income
Reversal of provisions made in purchase price allocations in prior years - - 217
Reversal of provisions made in prior years 100 17 37
Reversal of impairment losses - 10 10
Gain on disposal of entities 11 - -
Income 111 27 264
Special items, expenses
Goodwill impairment - -700 -700
Impairment of trade receivables, inventories and commercial assets in Ukraine - -139 -79
Cost related to the war in Ukraine -7 - -
Impairment of property, plant and equipment - - -74
Cost of termination of the Kronenbourg 1664 licensee agreement in the UK -196 - -
Restructuring projects and provisions -43 -13 -76
Costs related to acquisition of entities etc. - - -92
Donations - -31 -27
Miscellaneous, net -34 -9 -
Expenses -280 -892 -1,048
Special items, net -169 -865 -784
Company announcement 32/2023
16 August 2023
Page 27 of 33
www.carlsberggroup.com
NOTE 5
NET FINANCIAL EXPENSES
DKK million
H1
2023
H1
2022 2022
Financial income
Interest income 146 83 220
Interest on plan assets, defined benefit plans - - 120
Reversal of impairments of financial assets - 12 -
Other 3 23 7
Total 149 118 347
Financial expenses
Interest expenses -315 -248 -519
Capitalised financial expenses 3 - 2
Foreign exchange losses, net -21 -278 -219
Interest expenses on obligations, defined benefit plans -25 -19 -158
Interest expenses, lease liabilities -13 -6 -23
Other -110 -75 -155
Total -481 -626 -1,072
Financial items, net, recognised in the income statement -332 -508 -725
Financial items excluding foreign exchange, net -311 -230 -506
Company announcement 32/2023
16 August 2023
Page 28 of 33
www.carlsberggroup.com
NOTE 6
DEBT AND CREDIT FACILITIES
DKK million
Time to maturity for non-current borrowings,
30 June 2023 1-2 years 2-3 years 3-4 years 4-5 years > 5 years Total
Issued bonds - 3,713 9,280 - 6,659 19,652
Bank borrowings 74 42 26 12 - 154
Lease liabilities 348 99 89 78 633 1,247
Other non-current borrowings 104 - 1 2 15 122
Total 526 3,854 9,396 92 7,307 21,175
Financial liabilities, 30 June 2022 11,551 199 83 65 10,807 22,705
DKK million
Currency split of net financial debt¹
30 June
2023
30 June
2022
EUR 18,897 19,261
USD 2,857 2,870
CHF 2,029 1,371
Other currencies -225 -4,048
Total 23,558 19,454
¹After currency swap.
DKK million
Committed credit facilities
30 June
2023
30 June
2022
< 1 year 14,769 11,164
1-2 years 531 11,572
2-3 years 18,749 199
3-4 years 9,396 14,964
4-5 years 92 65
> 5 years 7,307 10,807
Total 50,844 48,771
Current 14,769 11,164
Non-current 36,075 37,607
Company announcement 32/2023
16 August 2023
Page 29 of 33
www.carlsberggroup.com
NOTE 7
NET INTEREST-BEARING DEBT
DKK million
H1
2023
H1
2022
2022
Issued bonds 19,652 21,473 21,470
Bank borrowings 154 46 70
Lease liabilities 1,247 954 1,203
Other non-current borrowings 122 232 122
Total non-current borrowings 21,175 22,705 22,865
Issued bonds 11,159 5,577 3,714
Bank borrowings 335 3,975 271
Lease liabilities 392 359 390
Other current borrowings 1,734 108 1,406
Total current borrowings 13,620 10,019 5,781
Gross financial debt 34,795 32,724 28,646
Cash and cash equivalents -11,237 -13,287 -8,163
Net financial debt 23,558 19,437 20,483
Loans to associates, interest-bearing portion -281 -276 -275
On-trade loans, net -473 -505 -492
Other receivables, net -440 -566 -390
Other interest-bearing assets, net -1,194 -1,347 -1,157
Net interest-bearing debt 22,364 18,090 19,326
Changes in net interest-bearing debt
H1
2023
H1
2022 2022
Net interest-bearing debt at beginning of period 19,326 19,162 19,162
Net interest-bearing debt reclassified to disposal group held for sale - 29 29
Cash flow from operating activities -6,108 -8,380 -12,949
Cash flow from investing activities, excl. acquisition of entities, net 1,521 1,055 2,997
Cash flow from acquisition of entities etc., net 803 31 68
Dividends to shareholders and non-controlling interests 4,586 4,129 4,431
Share buy-back 1,289 1,967 4,400
Acquired net interest-bearing debt 366 - -
Change in interest-bearing lending 99 66 63
Effect of currency translation 461 95 431
Lease liabilities, net -90 123 629
Other 111 -187 65
Total change 3,038 -1,072 164
Net interest-bearing debt, end of period 22,364 18,090 19,326
Company announcement 32/2023
16 August 2023
Page 30 of 33
www.carlsberggroup.com
NOTE 8
ACQUISITIONS AND DISPOSALS
On 7 March 2023, the Group completed the acquisition of Waterloo Brewing, Canada, which was
fully consolidated as of the acquisition date. The acquisition is not material to the Group’s financial
statements.
The purpose of the acquisition was to strengthen the Group’s market position in Canada with local
production for the existing Carlsberg business in Canada and Waterloo Brewing’s brands, and to
deliver supply chain and other synergies.
The purchase price allocation of the fair value of the identified assets, liabilities and contingent
liabilities is ongoing. Adjustments are therefore expected to be made to several items in the opening
balance, including brands and property, plant and equipment. The accounting treatment of the
acquisition will be completed within the 12-month period required by IFRS.
DKK million
Waterloo
Brewing
Consideration paid 734
Total cost of acquisition 734
Acquired assets and liabilities
Intangible assets 659
Property, plant and equipment 234
Right-of-use assets 155
Inventories 99
Trade and other receivables 99
Borrowings and lease liabilities -366
Provisions -6
Deferred tax liabilities -26
Trade payables -83
Other payables -31
Acquired assets and liabilities attributable to shareholders in Carlsberg A/S 734
Elements of cash consideration paid and received
Bank overdrafts acquired -72
Consideration paid -734
Cash flow from acquisition -806
Consideration received for disposal of a minor dormant entity 4
Acquisition and disposal of subsidiaries, net -802
Company announcement 32/2023
16 August 2023
Page 31 of 33
www.carlsberggroup.com
NOTE 9
DISCONTINUED OPERATIONS AND DISPOSAL GROUP HELD FOR SALE
Reported revenue in Russia amounted to DKK 4,305m (2022: DKK 4,340m). The net result was DKK
-404m (2022: DKK -8,618m), impacted by the write-down of net assets to fair value of DKK -1,169m
(2022: DKK -9,562m).
The fair value of disposal group held for sale was reassessed at 30 June 2023 and amounted to
DKK 5,697m (31 December 2022: DKK 7,518m).
Analysis of net result from Russian operations held for sale
DKK million
H1
2023
H1
2022 2022
Revenue 4,305 4,340 10,207
Costs -3,330 -3,501 -8,228
Profit before tax from Russian operations held for sale 975 839 1,979
Income tax -210 105 -105
Profit for the period from Russian operations held for sale 765 944 1,874
Impairment loss recognised on the remeasurement to fair value less costs to sell -1,169 -9,562 -9,949
Net result for the period from Russian operations held for sale -404 -8,618 -8,075
Major classes of assets and liabilities in disposal group held for sale
DKK million
H1
2023
H1
2022 2022
Intangible assets 3,512 8,071 5,483
Property, plant and equipment 2,001 4,006 2,989
Inventories 878 1,479 1,015
Receivables 1,067 1,958 937
Cash and cash equivalents¹ 2,627 1,009 1,194
Assets in disposal group held for sale 10,085 16,523 11,618
Borrowings 87 22 101
Tax liabilities, retirement benefit obligations etc. 675 1,591 1,144
Trade payables 2,132 3,104 1,892
Other liabilities 1,494 2,186 963
Liabilities in disposal group held for sale 4,388 6,903 4,100
Net assets in disposal group held for sale 5,697 9,620 7,518
¹ Cash and cash equivalents are not available for general use in the Group because of currency restrictions.
Net cash flow from Russian operations held for sale
DKK million
H1
2023
H1
2022 2022
Cash flow from operating activities 2,055 835 1,952
Cash flow from investing activities -92 -117 -376
Cash flow from financing activities 63 -203 195
Cash flow from Russian operations held for sale 2,026 515 1,771
SUBSEQUENT EVENTS
On 16 July, the Russian government issued a presidential decree, temporarily transferring the
management of our Russian business – Baltika Breweries – to the Russian Federal Agency for State
Property Management. According to the presidential decree, Carlsberg retains title to the shares in
Baltika Breweries, but no longer has any control or influence over the company, as it is unable to
direct the relevant activities and does not have access to the information required to manage the
company.
Company announcement 32/2023
16 August 2023
Page 32 of 33
www.carlsberggroup.com
As a result of the presidential decree, Baltika Breweries will be deconsolidated from July. This will
result in non-cash reclassification adjustments to the income statement of accumulated currency
translation losses of DKK 41.9bn and hedge losses of DKK 0.5bn in H2 2023. There will be no
impact on the Group’s total equity. The losses will be included in the net result from Russian
operations held for sale.
It is unclear what direct and indirect implications the loss of control will have on the conditional sale
announced on 23 June. The valuation of the investment is subject to significant estimation
uncertainty due to the loss of control of the business. The Group still considers it probable that it
can achieve a disposal of the business, though the conditions are currently very uncertain. The loss
of control of Baltika and the terms of its disposal could also have direct and indirect negative
impacts on parts of the continuing business and structures outside Russia. The unclear situation
means the financial impact of the loss of control is currently subject to significant uncertainty and
cannot be reliably estimated.
Company announcement 32/2023
16 August 2023
Page 33 of 33
www.carlsberggroup.com