Company Announcement No 37/2020 –
Very strong Q3 2020 leads to EBIT-increase of 5% in the first 9 months of 2020
The
During the summer months the majority of consumers spent their vacation in their home country. The high level of staycation in combination with good weather in August in
In order to mitigate the impact from COVID-19, we reduced sales and marketing spending in the spring. As the business performance was strong over the summer, we started to invest selectively into our brands. The effect will be higher marketing costs in Q4 compared to the same period last year.
Despite the impact of COVID-19, strong operational focus and cost management, effect from staycation as well as good weather in August improved the profit in Q3. The social distancing and gathering restrictions were partly lifted during the summer and continued the good momentum that started in June.
Key highlights of the quarter:
- Organic revenue growth of 6%
- Continued strong performance in Off-Trade
- On-Trade in
Italy performed better than expected - Low sales and marketing expenses
- Dividend of
DKK 600 million was paid, and a new share buy-back program of up toDKK 200 million was initiated.
New share buy-back program
The Board of Directors has decided to initiate a new share buy-back program of up to
This is on top of the
Financial highlights Q3-2020
Volume for Q3 2020 increased by 5% compared to Q3 2019 and amounted to 3.2 million hectoliters. For Q1-Q3 the volume was at the same level as in 2019.
In Q3, net revenue increased by 7% and amounted to
Earnings before interest and tax (EBIT) for Q3 was
Free cash flow amounted to
Outlook
The outlook for 2020 is narrowed to the upper half of the previously guided interval: EBIT
SELECTED FINANCIAL HIGHLIGHTS AND | |||||
mDKK | Q1-Q3 2020 | Q1-Q3 2019 | Q3 2020 | Q3 2019 | |
Volume (thousand hectolitres) | 8,446 | 8,489 | 3,177 | 3,027 | |
Net revenue | 5,824 | 5,905 | 2,258 | 2,114 | |
EBITDA | 1,532 | 1,453 | 699 | 574 | |
EBITDA margin (%) | 26.3 | 24.6 | 31.0 | 27,2 | |
EBIT | 1,263 | 1,202 | 600 | 492 | |
EBIT margin (%) | 21.7 | 20.4 | 26.5 | 23,3 | |
Profit before tax | 1,251 | 1,191 | 603 | 491 | |
Net profit for the period | 980 | 918 | 475 | 377 | |
Free cash flow * | 1,479 | 1,039 | 889 | 427 | |
Net interest-bearing debt | 1,837 | 2,681 | |||
ROIC incl. goodwill (%)** | 20.5 | 19.2 | |||
ROIC excl. goodwill (%)** | 33.7 | 31.0 | |||
NIBD/EBITDA (times)** | 1.0 | 1.5 | |||
Equity ratio (%) | 41 | 34 | |||
* Compared to the Annual Report 2019 the definition of free cash flow has been updated to reflect market practice of the IFRS 16 implementation. | |||||
Comparables for 2019 have been adjusted. ** Running 12-months |
For further information on this Announcement:
It will be possible for investors and analysts to follow Royal Unibrew’s presentation of the trading statement on Wednesday,
Participants from
Participants from the
Participants from the
Confirmation code: 9948088
The presentation may also be followed at Royal Unibrew’s website www.royalunibrew.com.
Financial Calendar for 2021 | |
Annual Report 2020 | |
Trading statement for the period 1 January - | |
Annual General Meeting 2021 | |
Interim Report for the period 1 January - | |
Trading statement for the period 1 January - |
Attachment
- RU_Q3_2020_trading_statement_print_FINAL
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