Royal Unibrew (RBREW) Q3 2024 TU earnings summary

Executive summary

• Achieved record quarterly EBIT in Q3 2024, with 25% organic EBIT growth and strong momentum from international and Western European markets, especially Italy.

• Organic volume growth of 8% in Q3, with total volume up 34–35% year-over-year, driven by international expansion and acquisitions.

• Market share gains across most regions, supported by growth in low/no sugar, premium, energy, and RTD categories.

• Integration of recent acquisitions, including PepsiCo's beverage business in Belgium/Luxembourg and agreements for Pernod Ricard's Nordic brands, progressing as planned.

• Sale of Polish brewery shareholdings for DKK 207 million, recognized as tax-free financial income.

Financial highlights

• Q3 2024 net revenue rose 22% to DKK 4,083m; year-to-date net revenue up 21% to DKK 11,462m.

• EBIT increased 33% to DKK 675m in Q3; organic EBIT growth was 25%; EBIT margin up to 16.5%.

• Free cash flow exceeded DKK 1 billion year-to-date, up 37% year-over-year.

• Earnings per share rose 84% to DKK 13.4 in Q3; excluding the Polish sale, EPS was DKK 9.3.

• Net interest-bearing debt to EBITDA improved to 2.1x, below the 2.5x target.

Outlook and guidance

• Full-year 2024 net revenue expected to be at least DKK 15 billion, with organic EBIT growth guidance narrowed to 15–19%.

• Acquisitions expected to contribute DKK 85 million to EBIT in 2024; Belgium and Luxembourg not expected to contribute in Q4 due to integration costs.

• Net financial expenses forecast at DKK 90 million; CapEx guidance DKK 850–950 million.

• Effective tax rate expected around 21% for the full year.