Company Announcement No 40/2021 – 23 August 2021
Strong momentum in Q2 and full-year guidance raised
- For the first half of the financial year, organic volume growth was 13% (Q2: 12%) supported by less restrictions related to COVID-19 in H1 2021 compared to H1 2020. As a result, organic revenue growth in H1 2021 was also 13% (Q2: 16%)
- In Q2 2021, EBIT increased by 13% to
DKK 521 million (Q2 2020:DKK 463 million ), resulting in an EBIT margin of 22.7% (Q2 2020: 23.4%) - For the first half of the year, EBIT increased by 13% to
DKK 750 million (H1 2020:DKK 663 million ), resulting in an EBIT margin of 19.2% (H1 2020: 19.2%). EBIT is thereby 6% higher than in H1 2019, i.e. before COVID-19 broke out
- Free cash flow increased by
DKK 123 million and wasDKK 785 million (Q2 2020:DKK 662 million ) increasing first-half free cash flow toDKK 683 million (H1 2020:DKK 590 million )
- The outlook for full-year 2021 EBIT is raised to
DKK 1,625-1,700 (previouslyDKK 1,525-1,625 million ) - A new share buy-back program of up to
DKK 250 million is launched
SELECTED FINANCIAL HIGHLIGHTS AND | |||||||
mDKK | Q2 2021 | Q2 20201 | H1 2021 | H1 20201 | FY 20201 | ||
Volume (thousand hl) | 3,421 | 3,053 | 5,957 | 5,269 | 11,093 | ||
Net revenue | 2,300 | 1,979 | 3,905 | 3,457 | 7,315 | ||
EBITDA | 609 | 546 | 927 | 833 | 1,861 | ||
EBITDA margin (%) | 26.5 | 27.6 | 23.7 | 24.1 | 25.4 | ||
EBIT | 521 | 463 | 750 | 663 | 1,515 | ||
EBIT margin (%) | 22.7 | 23.4 | 19.2 | 19.2 | 20.7 | ||
Profit before tax | 526 | 460 | 749 | 648 | 1,505 | ||
Net profit for the period | 417 | 360 | 594 | 505 | 1,198 | ||
Free cash flow | 785 | 662 | 683 | 590 | 1,414 | ||
Net interest-bearing debt | 2,618 | 2,114 | 2,193 | ||||
NIBD/EBITDA (times)2 | 1.3 | 1.2 | 1.2 | ||||
Equity ratio (%) | 32 | 40 | 40 | ||||
Earnings per share (EPS) | 8.6 | 7.1 | 12.3 | 10.1 | 24.1 | ||
1 Figures are restated as described in the attached Interim Report 2 Running 12 months |
Statement by Royal Unibrew’s CEO
“I am of course very happy that almost all sales channels are now open again, so that we and our customers can return to a more normal environment. We are also very pleased with our performance in Q2 where EBIT was the highest ever for a second quarter, despite substantial increases in sales and marketing costs and the business still being negatively impacted by COVID-19. The organization has once again stepped up to all the challenges, and supported by a very flexible and adaptable supply chain, we delivered strong results across the group. Our results clearly benefited from the re-opened On-Trade, warm weather and staycation.
Q2 was a very busy quarter. We produced and sold more than we did before COVID-19, despite the fact that many of our customers were still impacted by COVID-19 related restrictions. On top of this, the channel and product mix changes created by COVID-19 put pressure on our packaging lines, which have been running at full capacity during the second quarter and into the summer. To remain a flexible supplier with the highest service level, we will invest in more capacity, but for now, production and procurement planning is more important than ever.
We also broke ground on a new solar panel plant next to our brewery in Faxe, which will generate a significant part of our electricity needs for the Danish production sites. During the quarter, we committed to 100% recycled plastic for PepsiCo products in
During the second quarter, we also welcomed our new colleagues from the Fuglsang acquisition, which is a strong addition to our portfolio of local anchored brands in
The strong momentum in our key markets has continued into the third quarter and combined with the strong results in the first half of the year, the current development in COVID-19 and our M&A activity, we lift our full-year outlook for EBIT to
Financial highlights Q1-2021
The organic volume growth of 12% to 3.4 million hectolitres in Q2 2021 was broadly based across geographies. Volumes increased significantly in countries like
Net revenue for Q2 2021 amounted to
Earnings before interest and tax (EBIT) for Q2 2021 was
In H1 2021, EBIT was
The EBIT margin was unchanged at 19.2% in H1 2021. The EBITDA margin decreased by 0.4 percentage point to 23.7% in H1 2021 compared to the year before.
The free cash flow for H1 2021 amounted to
In H1 2021, net interest-bearing debt went up by
The Board of Directors has decided to launch a new share buy-back program of up to
Acquisitions
The acquisition of Bryggeriet S. C. Fuglsang A/S contributed only slightly to the quarter.
On
On
Full-year outlook
The full-year outlook for 2021 is raised:
• EBIT:
The strong momentum experienced in H1 2021 in our key markets has continued into the beginning of Q3 2021 supported by the continued re-opening and a positive impact from staycation. The top end of guidance includes that no major restrictions are imposed and that the re-opening continues throughout the year. It also includes a positive impact from acquisitions in H2 and no further raw material price increases. On the other hand, the low end of guidance includes higher raw material prices than the current level as well as wider COVID-19 related restrictions in Q4.
The H1 Interim Report has been published via
For further information on this announcement:
Investor Relations:
Media Relations:
Financial Calendar for 2021 | |
Trading statement for the period 1 January - |
It will be possible for investors and analysts to follow Royal Unibrew’s presentation of the Interim Report on Tuesday,
Participants from
Participants from the
Participants from the
Confirmation code: 56418792#
The presentation may also be followed at Royal Unibrew’s website www.royalunibrew.com.
Forward-looking statements:
This Interim Report contains forward-looking statements, including statements about the Group’s sales, revenue, earnings, spending, margins, cash flows, inventories, products, actions, plans, strategies, objectives and guidance with respect to the Group’s future operating results. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the following words or phrases “believe, anticipate, expect, estimate, intend, plan, project, will be, will continue, likely to result, could, may, might”, or any variations of such words or other words with similar meanings. Any such statements involve known and unknown risks, estimates, assumptions and uncertainties that could cause the Group’s actual results, performance or industry results to differ materially from the results expressed or implied in such forwardlooking statements.
Some important risk factors that may have direct bearing on the Group’s actual results include, but are not limited to: economic and political uncertainty (including interest rates and exchange rates), financial and regulatory developments, development in the demand for the Group’s products, introduction of and demand for new products, changes in the competitive environment and the industry in which the Group operates, changes in consumer preferences, increasing industry consolidation, the availability and pricing of raw materials and packaging materials, cost of energy, production- and distribution-related issues, information technology failures, breach or unexpected termination of contracts, price reductions resulting from market-driven price reductions, determination of fair value in the opening balance sheet of acquired entities, litigation, pandemic, environmental issues and other unforeseen factors.
New risk factors may emerge in the future, which the Group cannot predict. Furthermore, the Group cannot assess the impact of each factor on the Group’s business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Accordingly, forward-looking statements should not be relied on as a prediction of actual results.
Attachment
- RoyalUnibrew_H1_2021_UK_final
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