Carlsberg has increased its profit outlook for the remainder of the year after a “solid business performance” in the opening half of 2023.

The Danish brewer has lifted its forecast for the organic operating profit it expects to generate this year.

The Tuborg maker is predicting growth of 4-7%, compared to an earlier forecasy that ranged from a fall of 2% to an increase of 5%

“For H1 2023, the Carlsberg Group delivered 0.8% organic volume growth, organic revenue growth of 11.2% and organic operating profit growth of 5.2%”, the company said in a stock-exchange filing today (15 August).

The Tuborg maker’s shares rose almost 3% today following the updated outlook, which came a day ahead of a scheduled earnings release.

The new forecast marks the second upgrade since April that Carlsberg has made, based on price increases.

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By GlobalData

After the brewer’s first quarter results, it narrowed its forecast for full-year organic operating profit growth from a range of -5% to 5% to -2% to 5%.

“Carlsberg remains upbeat about its prospects in all key geographies, despite volume pressures as a result of higher prices,” wrote Laurence Whyatt, a Barclays analyst in a note at the end of July, in which he predicted the improved outlook.

“Higher pricing is likely to lead to robust margins, and the company does not share Heineken’s view of a polarised shape of the year (i.e. little difference between H1 and H2 EBIT growth).”

Whyatt also noted the good European weather would play a role in the “company’s most important month”.

Earlier this month, when Heineken revealed a slide in its first-half operating profit for the year, CEO Dolf van den Brink defended the price hikes which it had implemented. He added that the moves were needed to protect margins amid pressure on costs.

Carlsberg also said it will start a DKr1bn ($146m) share buyback beginning Wednesday (16 August).