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Carlsberg A/S, which last week raised its full-year forecast, reported a strong first half after its sales of craft beers jumped 17% from a year earlier.

The development spurred 25% growth in net profit to 3.1 billion kroner ($460 million), the Danish company said on Thursday. “All our key growth priorities –- craft & specialties, alcohol-free brews and Asia -– delivered good growth,” the company said.

  • Carlsberg is also starting the second stage of a previously announced share buyback program and plans to repurchase 2 billion kroner of its own stock.

Key Insights

  • After having spent several years cutting costs, Carlsberg’s Chief Executive Officer Cees ’t Hart is now focusing boosting sales growth, which it’s achieving through high-end beers such as Grimbergen and Jacobsen ales.
  • Last week, the company’s shares soared the most in almost a decade after Carlsberg raised its forecast: it now sees organic operating profit rising at a high single-digit percentage rate, after previously forecasting growth in the mid-single-digits.
  • Carlsberg’s and AB InBev’s positive performances contrast that of rival Heineken NV, which lagged behind in the most recent period.

Market Reaction

  • The shares have risen 37% this year. Trading is due to start at 9 a.m. local time in Copenhagen.

Get More

  • Carlsberg’s first-half results, click here.
  • Read the statement.

To contact the reporters on this story: Christian Wienberg in Copenhagen at cwienberg@bloomberg.net;Thomas Buckley in London at tbuckley25@bloomberg.net

To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, Christian Wienberg, Tasneem Hanfi Brögger

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