Carlsberg says coronavirus to curb beer sales

[LONDON] Carlsberg A/S forecast slower earnings growth for this year as the coronavirus outbreak in China threatens to weigh on beer consumption in Asia.

Adjusted earnings before interest and tax in 2019 rose 10.5 per cent to 10.5 billion kroner (S$2.06 billion), matching analyst estimates. The company forecast mid-single-digit growth this year.

The Danish brewer tends to give a conservative forecast early in the year and has often adjusted the outlook upward later. Carlsberg also said currency shifts should boost earnings by about 50 million kroner this year, based on recent exchange rates.

In addition to the disease outbreak in China, competition remains tough in Russia, and it's ending a business of selling soft drinks at the border between Denmark and Germany. The company is especially exposed to a slowdown in Asia, where a new drunk-driving law in Vietnam is also weighing on sales.

Carlsberg is the first brewer to report this earnings cycle, with its forecast setting a subdued tone for rivals Anheuser-Busch InBev NV and Heineken NV, which have prioritized Asia as a key growth engine in recent years.

BLOOMBERG