Danish brewing titan Carlsberg has unveiled a robust financial performance for 2025, with operating profits soaring by 22.7 per cent to 14 billion Danish krone (approximately £1.6 billion). This impressive growth is largely attributed to the successful integration of Britvic, the UK-based soft drinks manufacturer, following a £3.3 billion takeover finalised early last year.
Britvic Synergies Exceed Expectations
The strategic acquisition of Britvic, known for brands like J20 and Robinsons squash, has proven highly beneficial. Carlsberg reported that synergies between its UK operations and Britvic are progressing "ahead of plan," with around 30 per cent of the projected £110 million in cost savings already realised. The Hemel Hempstead-based company employs approximately 4,500 people in Hertfordshire, bolstering Carlsberg's presence in the British beverage market.
Volume Growth and Organic Decline
Overall sales volumes increased by 17.7 per cent year-on-year, contributing to an 18.8 per cent rise in total revenues. However, the group's organic volumes experienced a slight 0.6 per cent decline. This dip is primarily linked to the termination of Carlsberg's contract to brew and distribute San Miguel lager in the UK. Mahou San Miguel, the brand's parent company, ended the agreement last year, transferring the UK licence to AB InBev.
CEO's Vision for a Diversified Portfolio
Group chief executive Jacob Aarup-Andersen commented on the results, stating: "Navigating a challenging consumer environment, we successfully integrated Britvic, prepared to take over a substantial soft drinks business in Central Asia, achieved positive results for our growth categories and accelerated growth in India." He emphasised the company's strategic direction, adding: "We've taken significant steps towards building a broad and diversified beverage portfolio. This will not only enable us to meet a wider range of consumer needs and occasions, but also strengthen our position as a world-class brewer. The combination of beer and soft drinks is therefore unlocking exciting new opportunities for both growth and value creation."
Alcohol Duty Increase Adds Pressure
Carlsberg's financial report coincides with a significant rise in alcohol duty, which took effect on Sunday, 1 February. The increase, confirmed by Chancellor Rachel Reeves in November's autumn budget, sees alcohol duty escalate by 3.66 per cent, aligning with the Retail Prices Index (RPI) inflation. Industry leaders have warned that businesses "have no choice but to increase prices" to remain viable, with a "trickle down" effect to consumers likely following years of other cost increases.
Official data highlights the impact: the duty on a typical bottle of gin (37.5 per cent ABV) will climb by 38p to £8.98, inclusive of VAT. Similarly, a 40 per cent ABV bottle of Scotch whisky will see its duty rise by 39p to £9.51, while a bottle of 14.5 per cent red wine will incur an additional 14p in duty. This regulatory change adds another layer of complexity to the competitive beverage landscape in which Carlsberg operates.
