Carlsberg Group (CARL) CMD 2025 summary

Financial strategy and growth algorithm

• Targets 4–6% organic revenue growth, with one-third from volume and two-thirds from revenue per hectoliter improvements, driven by premiumization, category mix, and disciplined pricing.

• Gross margin is to be rebuilt to 47–49% (including Britvic), funded by procurement and supply chain efficiencies, with a focus on maintaining flattish COGS per hectoliter.

• Marketing investment will rise to about 8.5% of revenue (adjusted for Britvic), and CapEx will be managed at 6–7% of revenue, trending lower as integration progresses.

• SG&A is to remain flat as a percentage of revenue, with Britvic synergies providing a one-off benefit and ongoing discipline required thereafter.

• Strong cash flow focus, aiming to keep trade working capital at around -20% of revenue, with additional improvements targeted in Britvic.

Strategic direction and growth priorities

• Building a resilient, structurally growing business with a diversified beverage portfolio, emphasizing premium beer, alcohol-free brews, and soft drinks, supported by the Accelerate SAIL strategy.

• Strengthening commercial capabilities, digital transformation, and innovation to drive top- and bottom-line growth.

• Expanding in high-potential markets, especially Asia, Central & Eastern Europe, and India, while maintaining strongholds in Western Europe.

• Building a growth culture structured around five principles: challenging the status quo, compassion, consumer passion, fast decision-making, and people empowerment.

• Organic operating profit growth to outpace revenue growth, supported by increased sales and marketing investments.

Business developments and portfolio strategy

• Acquisition of Britvic creates a unique multi-beverage platform in the UK, combining beer and soft drinks, and deepening the PepsiCo partnership.

• Soft drinks now represent 30% of group volumes and revenue, with strong structural tailwinds and synergy with beer across the value chain.

• Expanding PepsiCo partnership to 9 markets from 2026, with further geographies under consideration.

• Focus on premiumisation, innovation, and category expansion, including alcohol-free brews, energy drinks, and functional beverages.

• Digital transformation initiatives include a unified data foundation, AI-powered analytics, and new digital commerce platforms to enhance sales execution and value management.