Brief: Royal Unibrew Narrows FY EBIT Outlook Range

Royal Unibrew A/S

08/11/2023 10:24

Nov 8 (Reuters) - Royal Unibrew A/S  RBREW.CO :
    * FULL-YEAR OUTLOOK FOR NET REVENUE OF APPROXIMATELY DKK
13.3
BILLION IS MAINTAINED
    * WE NARROW 2023 EBIT OUTLOOK RANGE TO DKK 1,600-1,700
MILLION
(PREVIOUSLY: DKK 1,600-1,750 MILLION)
    * WE EXPECT TO SEE CHANGES IN CONSUMER PREFERENCES IN
REMAINDER OF
2023 AND INTO 2024
    * CONSUMERS WILL GO OUT LESS, SPEND LESS AND INCREASINGLY
LOOK FOR
GOOD OFFERS
    * IN WESTERN EUROPE, OUR ITALIAN BEER BUSINESS VOLUMES WERE
UP
AGAINST TOUGH COMPARABLE NUMBERS LAST YEAR AND CONTINUES TO
IMPROVE, AND WE HAVE NOW DELIVERED SIX MONTHS OF CALIBRATED
SELL-IN AND SELL-OUT
    * IN Q3, WE STARTED TO LAP SOME OF THE EXTRAORDINARY
INFLATION
DRIVEN PRICE INCREASES IMPLEMENTED LAST YEAR, WHICH MEANS THAT
THE PRICE/MIX DEVELOPMENT NO LONGER BENEFITS FROM THIS
    * CONTINUED WEAK NORWEGIAN AND SWEDISH CURRENCIES ARE ALSO
PUTTING
PRESSURE ON THE REPORTED TOP LINE GROWTH AND THEREBY ALSO
IMPACTING PRICE/MIX NEGATIVELY
    * WITH THE HIGHER INTEREST RATES AND HIGHER COSTS OF LIVING,
WE
EXPECT TO SEE CHANGES IN CONSUMER PREFERENCES IN THE REMAINDER
OF 2023 AND INTO 2024
    * WE HAVE EXPERIENCED SOME BENEFITS ON COSTS FROM LOWER
ENERGY
PRICES, WHEREAS WE CONTINUE TO SEE INFLATION IN OTHER CATEGORIES
    * AS FOR RAW MATERIALS, SUGAR AND ORANGE JUICE ARE TRADING
AT VERY
HIGH PRICE LEVELS, AND THE TIGHT LABOR MARKET CONTINUES TO
SUPPORT WAGE AND MAINTENANCE COST INFLATION
    * AT THIS POINT IN TIME, WE DO NOT EXPECT A SIGNIFICANT
DECLINE IN
THE TOTAL COST BASE NEXT YEAR
    * WE HAVE TAKEN PRICE INCREASES IN SEPTEMBER, AND WE ARE
THEREFORE
GOING TO TAKE FURTHER ACTIONS TO CLOSE THE GAP BETWEEN COST AND
PRICE DURING THE COMING MONTHS

Source text for Eikon:  ID:nGNE6b3XhR 
Further company coverage:  RBREW.CO 

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