Carlsberg Earnings: Reported Revenue Growth in Line With Consensus; New Buyback of DKK 1 Billion

No-moat Carlsberg reported revenue growth of 4.4%, broadly in line with our estimates and company-compiled consensus. Results were driven by volume growth and revenue per hectoliter growth, partially offset by negative currency effects. The outlook for 2024 remains unchanged, with organic operating profit growth expected to be between 1% and 5%. Management plans to increase the marketing investment for the full year by more than 10% to support its long-term growth initiatives while keeping the overall ratio of selling, general, and administrative expenses flat as a percentage of revenue. Due to the group's strong financial position, the company also announced a new quarterly buyback program amounting to DKK 1 billion, running from April 30 to Aug. 9. The share price remained broadly stable at the time of writing. We make no change to our DKK 970 fair value estimate.