Carlsberg A/s (adr) Stock Earnings Reports

Carlsberg delivered strong 2025 results driven materially by the mid‑January acquisition of Britvic. Reported volumes rose 17.7%, revenue +18.8% and operating profit +22.7%; adjusted EPS increased 11%. Management upgraded and is ahead of its Britvic cost synergy timetable (upgraded target to GBP 110m; ~30% delivered in 2025 and management now expects 60–70% delivered after two years). Dividends are proposed up 7% to DKK 29/share. Management introduced Management‑defined Performance Measures (MPMs) to exclude non‑cash PPA amortization from internal performance metrics and to prepare for early adoption of IFRS 18 (H1 reporting). Organic performance was softer: organic revenue was -0.6% (but +1.1% excluding lost San Miguel U.K. volumes); organic operating profit grew +5% with an acceleration in H2. Regional highlights: strong Britvic performance in the U.K. (Pepsi Max especially strong in Q4), China showed easing but cautious optimism (Q4 +4%, full year +1%), Kazakhstan Pepsi license rollout began in Q4 and is expected to add ~1.5ppt to group volumes in 2026, India delivered high-single-digit growth and an IPO is being explored to potentially unlock shareholder value. Financial position: free operating cash flow DKK 7.0bn, CapEx DKK 5.6bn (2025), net interest‑bearing debt DKK 61.6bn (3.28x EBITDA pro forma) with a target to reduce leverage to ≤2.5x by end‑2027; 2026 guidance expects organic operating profit (MPM) growth 2–6%, CapEx DKK 6–7bn, financial expenses ~DKK 2.2bn and tax rate ~23%. Key risks: continued weak consumer sentiment in some markets, geopolitical volatility (Ukraine), FX exposure and execution risks around integration, supply chains and co‑packers (Kazakhstan).