Financial statement as at 31 December 2016

A good year for the Carlsberg Group with earnings growth on track and strong cash flow

Unless otherwise stated, comments in this announcement refer to full-year performance.
Unless otherwise stated, market development and market share data refer to November 2016 MAT.

Financial highlights

  • Funding the Journey delivering approximately DKK 0.5bn of the anticipated benefits of DKK 1.5-2.0bn by 2018.
  • Reported net revenue of DKK 62.6bn; 2% organic growth (H2: flat).
  • Total price/mix of +3% (H2: +2%).
  • Total organic volume decline of 2% (H2: -2%), mainly due to less exposure to margin-dilutive volumes.
    • Volume growth of Tuborg 9%, Carlsberg 5% and Grimbergen 11%.
  • Organic operating profit growth of 5% (H2: +3%). Including currencies and disposals of businesses, operating profit down 3% to DKK 8,245m (H2: DKK 4,797m).
  • Operating margin improved by 30bp (H2: +50bp) to 13.2%. Margin improvement in all three regions.
  • Reported net profit DKK 4,486m (DKK -2,926m in 2015, impacted by special items).
  • Strong free cash flow of DKK 8.6bn (DKK 7.5bn in 2015), positively impacted by disposal of non-core assets.
  • Net interest-bearing debt reduction of DKK 5.4bn to DKK 25.5bn; net interest-bearing debt/EBITDA declined to 1.96x.
  • ROIC improvement of 110bp to 9.2%.
  • For 2016, the Supervisory Board will propose an increase of 11% in dividend to DKK 10.0 per share in light of the strong cash flow.

2017 earnings expectations

  • The Group expects to deliver mid-single-digit organic operating profit growth and a further reduction in financial leverage.
  • Based on the spot rates as at February 6, a translation impact of DKK +350m is expected.

CEO Cees 't Hart says:

“2016 was a good year for the Carlsberg Group. We’re satisfied with our performance and the delivery of 5% organic growth in operating profit, a solid price/mix, strong cash flow and a further reduction in financial leverage.

“During the year, we took significant steps to become a more successful company. We launched our new strategy – SAIL’22 – and its priorities are now well integrated in our plans for 2017. In addition, Funding the Journey delivered benefits faster than anticipated for the year.

“In 2017, we’re determined to achieve a substantial proportion of the remaining Funding the Journey benefits, allowing us to grow earnings organically and invest in SAIL’22-related activities to support the future growth of the company.”

Quick Links

2016 Full Year Results Conference Call 

Quarterly Financial Data in Excel

FY 2016 Presentation

Financial Statement as of 31 December 2016

Financial Statement as of 31 December 2016 (DK)

 

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