Strong results in a challenging environment
STRONG VOLUME GROWTH, PARTICULARLY IN ASIA
Organic volume growth 5.7%
STRONG REVENUE GROWTH, DRIVEN BY ALL REGIONS
Organic revenue growth 15.6%
VERY STRONG OPERATING PROFIT AND CASH PERFORMANCE
Organic operating profit growth 12.2%
DRIVING SHAREHOLDER VALUE
Total share buy-back and dividend payment for the year of DKK 7.8bn
2023 EARNINGS EXPECTATIONS
2023 will be another challenging year. Due to our and our suppliers’ rolling hedging, last year’s commodity and energy price increases will have a significant impact on our 2023 cost of sales and logistics costs. We intend to offset the higher costs in absolute terms through pricing, mix and continued tight focus on costs. While beer historically has been a resilient consumer category, the higher prices in combination with generally high inflation may have a negative impact on beer consumption in some of our markets, particularly in Europe.
The development of the war in Ukraine and the impact on our business remain highly uncertain, as is the COVID-19 recovery in China, including consumer off-take during the Chinese New Year celebrations.
The wide guidance range reflects these significant uncertainties for 2023. Consequently, 2023 guidance is:
CEO Cees ’t Hart says: “The Group delivered a strong set of results for 2022 thanks to an impressive effort by our employees across the Group and continued good execution of our strategy. The high earnings and very strong cash generation were achieved despite many challenges, including the war in Ukraine, rising energy and commodity prices, and the impact from the pandemic, particularly in Asia.
“Throughout the year, a key priority was the safety and well-being of our Ukrainian colleagues, whose resilience, courage and strength have impressed us deeply.
“2023 will be another challenging year, but the strategic, organisational and financial health of our company is strong, and we are confident that our purpose-led and performance-driven culture will drive continued sustainable long-term value creation.
“SAIL’22 has successfully guided our journey since 2016. Setting sail for the next five years, our new strategy, SAIL’27, continues the ambitious long-term strategic direction for the Group. As part of SAIL’27, our enhanced ESG programme, Together Towards ZERO and Beyond, sets ambitious milestones for 2030 and 2040.”
Get the Full Year highlights from our CFO Ulrica Fearn: