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Profit Growth Might Be Sluggish, Warns Carlsberg’s CEO

Carlsberg, Danish brewer has alerted that exceptional profit growth in 2018 might not be the same this year, except if it flourishes again. The company anticipates organic operating income in 2019 to rise to an average level below the 11% level last year.

Cees’t Hart, president and CEO of Carlsberg, told on Wednesday that the hot summer of 2018 and the World Cup in Russia helped the company increase its margin.

“The sun is still one for our bestsellers,” he said, adding that the explosion of last year’s gains could be a hard-to-compete standard.

“In 2018, we increased our profit forecasts twice, but we started with the average one-digit forecasts, which we are still doing before 2019,” he added.

The company in Copenhagen also announced better-than-expected sales in the fourth quarter fueled by strong growth in China. Carlsberg intends to be present in 30 to 40 Chinese cities by the end of the year, until the end of 2018.

Hart said that Russia was no longer the company’s main market after strong growth in India and China. The publication of the 2018 annual results on Wednesday showed an increase in sales of 3% over the previous year. As a result of the data, the stock price of the brewery has increased almost 3%.

Core beer brand of Carlsberg also witnessed a significant growth, as sales of Tuborg spurred 10% backed by lucrative growth in Western Europe, India, and China. The global sales of Carlsberg surged by 5%.

In the year-over-year comparison, the brewer made some noteworthy investments to spur its operations. This comprised the buying 28.5% stake in Viacer, which is the owner of Super Bock Group; the major stake takeover of Cambrew Limited, Cambodian brewer; and full takeover of second-largest brewer of Greece, Olympic Brewery.