A solid set of results in 2023 despite a challenging environment.
ACCELERATE SAIL – INCREASING LONG-TERM AMBITIONS
Increasing commercial investments to accelerate compounding, long-term growth
CONTINUED VOLUME GROWTH IN ASIA
Group organic volume development -0.5%
STRONG REVENUE GROWTH, DRIVEN BY ALL REGIONS
Organic revenue growth 9.2%
SOLID ORGANIC OPERATING PROFIT GROWTH
Organic operating profit growth 5.2%
REPORTED NET PROFIT IMPACTED BY NON-CASH RECLASSIFICATIONS
DRIVING SHAREHOLDER VALUE
Total share buy-back and dividend payment for the year DKK 6.9bn
2024 EARNINGS EXPECTATIONS
While the macroeconomic environment and impact on consumer behaviour remain uncertain, inflationary pressure is moderating. Consequently, we expect a more moderate increase in our total cost base than in previous years. We intend to offset the higher total costs/hl in absolute terms through higher revenue/hl and continued tight cost control.
To position the Group for successful delivery of our increased long-term growth ambitions, we will step up commercial investments in 2024 in alignment with Accelerate SAIL. While keeping the ratio of SG&A to revenue flat, we intend to increase absolute sales and marketing investments, the latter by more than 10%. The majority of the incremental sales and marketing investments will be allocated to brand and route-to-market investments in China and Vietnam, premium brands in markets across our regions, digital capability projects and B2B e-commerce (eB2B).
Consequently, our earnings expectations for 2024 are:
CEO Jacob Aarup-Andersen says:
“We delivered a solid set of results for 2023, which were achieved despite a challenging consumer environment, significant inflationary pressure and currency headwinds.
“We’re excited about our strategy refresh – Accelerate SAIL – and its increased focus on, and commitment to, growth. The outperformance of our premium portfolio and our results in key Asian markets in 2023 are an affirmation that we have a strong platform to expand from. Benefiting from the continued strong financial health of the business, we have the capacity to increase our investments in the Accelerate SAIL growth initiatives and deliver on our updated, higher ambitions for compounding top-line and earnings growth and sustainable long-term value creation.”
Get the Full Year highlights from our CEO Jacob Aarup-Andersen and CFO Ulrica Fearn: