Royal Unibrew (RBREW) Q2 2024 earnings summary

Executive summary

• Strong H1 2024 performance with organic EBIT up 16%-17% and net revenue up 20%, driven by acquisitions, integration progress, and commercial execution; extraordinary dividend of DKK 14.5 per share to be paid in October 2024.

• Integration of recent acquisitions in Holland and Italy, and the PepsiCo beverage portfolio in Belgium and Luxembourg, are progressing as planned, with the latter set for October 2024.

• Market share gains achieved in key categories and geographies, supported by innovation and efficiency improvements.

• Decarbonization efforts led to a 35% organic CO₂ reduction in H1 2024, with SBTi-approved net-zero targets.

• Launch of new NoLo (no/low sugar and alcohol) products and recognition for alcohol-free beer; gender diversity improving at board and management levels.

Financial highlights

• H1 2024 net revenue reached DKK 7,379 million, up 20% year-over-year; organic net revenue growth was 6%.

• H1 2024 EBIT increased 22% to DKK 866 million; organic EBIT growth was 16%-17%; EBIT margin at 11.7%.

• H1 2024 net profit was DKK 559 million, up 15%; EPS at DKK 11.2, up 14%.

• Free cash flow in H1 2024 was DKK 560 million, up from DKK 545 million; NIBD/EBITDA at 2.4x, within target.

• Net financial expenses rose 52% to DKK 163 million in H1, with full-year guidance capped at DKK 300 million.

Outlook and guidance

• Full-year 2024 net revenue guidance raised to at least DKK 15 billion, including Belgium/Luxembourg contribution.

• Organic EBIT growth guidance for 2024 increased to 14%-19% (from 9%-19%), with total EBIT expected between DKK 1,950-2,025 million.

• Acquisitions expected to contribute at least DKK 80 million to EBIT in 2024.

• Capex guidance set at DKK 850-1,000 million; net financial expenses (excl. FX) capped at DKK 300 million.

• Macro uncertainty, modest underlying volume growth, and weak on-trade consumer spending expected.