Financial Data and Key Metrics Changes - The group reported total volumes grew organically by 7.4% and operating profit reached DKK10.9 billion, reflecting a 12.5% organic year-on-year improvement [5][22] - Total cash returns to shareholders amounted to DKK6.8 billion, an increase of nearly DKK800 million compared to 2020 [5] - Revenue increased organically by 10% and 13.8% in reported terms, with revenue per hectoliter growing by 3% [22][23] Business Line Data and Key Metrics Changes - Craft and specialty volumes increased by 15%, while alcohol-free brews grew by 17% [6] - E-commerce revenue reached DKK4 billion, up more than 50% from 2020, with business-to-consumer e-commerce revenue rising by around 40% [6] - Operating profit grew organically by 12.5%, with reported operating profit for 2021 being 4% above 2019 levels [22][24] Market Data and Key Metrics Changes - In Western Europe, on-trade volumes grew by 12%, with a significant recovery in H2 [7][8] - The Nordic markets saw high single-digit volume growth, with double-digit growth in Denmark and Norway [10] - Asia delivered a 12.1% volume growth, primarily driven by China and India, with operating profit growing by 23.9% [13][14] Company Strategy and Development Direction - The company announced its new SAIL'27 strategy, aiming for higher ambitions for top and bottom line growth [3][37] - Focus areas include premiumization, expanding alcohol-free brews, and exploring alcoholic categories beyond beer [50][52] - The strategy emphasizes a collaborative approach, engaging over 200 employees from various markets [40] Management's Comments on Operating Environment and Future Outlook - The management anticipates 2022 to be challenging due to ongoing pandemic impacts and rising input costs, estimating COGS per hectoliter to increase by 10% to 12% [30][31] - The company aims to offset higher costs through increased revenue per hectoliter from price increases and improved channel and product mix [31][68] - The effective tax rate is expected to be around 22% to 23%, with a focus on maintaining a conservative balance sheet [68] Other Important Information - Free cash flow improved significantly to DKK8.9 billion, driven by higher EBITDA and strong working capital inflow [27] - The company plans to increase the dividend per share by 9% to DKK24, maintaining a payout ratio of 49% [29] - The company will continue share buybacks, with a new program of DKK1 billion launched until April 2022 [29] Q&A Session Summary Question: Revenue activity and COGS headwinds - The company plans to cover COGS increases through revenue per hectoliter increases, with no significant impact on beer consumption observed from price increases [75][80] Question: Volume elasticity concerns - Management expressed caution regarding potential volume elasticity but noted no current impact on volumes, emphasizing the need to monitor brand, competitor, and general inflationary pressures [82]
Carlsberg(CABGY) - 2021 Q4 - Earnings Call Transcript