Brief: Royal Unibrew Reduces Expectations To FY Net Revenue

Royal Unibrew A/S

22/08/2023 11:32

Aug 22 (Reuters) - Royal Unibrew A/S  RBREW.CO :
    * INTERIM REPORT FOR H1 2023
    * FULL-YEAR OUTLOOK FOR 2023 IS NOW NET REVENUE AROUND DKK
13
BLN(PREVIOUSLY: DKK 13-14 BLN)
    * IN ITALY, DE-STOCKING ENDED IN Q2
    * SEES 2023 EBIT OF DKK 1,600- 1,750 MLN(PREVIOUSLY: DKK
1,550-1,750 MLN
    * STILL INFLATION FROM E.G. SALARY INCREASES AND
CURRENCY-RELATED
INFLATION THAT NEED TO BE MITIGATED
    * WE HAVE REDUCED OUR EXPECTATIONS TO NET REVENUE BECAUSE OF
POOR
WEATHER IN NORDICS IN JULY, AUGUST AND WEAK NORWEGIAN AND
SWEDISH KRONER
    * ANNOUNCED ACQUISITIONS OF VRUMONA AND SAN GIORGIO BREWERY
IN
ITALY ARE NOT INCLUDED IN OUTLOOK FOR 2023
    * WE DELIVERED STRONG TOP LINE GROWTH IN H1 2023, AS OUR
MULTI-BEVERAGE BUSINESSES IN NORTHERN EUROPE CONTINUE TO CARRY
ON STRONGLY
    * CONTINUE TO EXPECT PRIVATE LABEL AND DISCOUNT BRANDS TO
GAIN
SHARE IN OVERALL MARKET
    * CAPEX FOR 2023 IS EXPECTED TO BE AROUND 5-6% OF NET
REVENUE AS
WE HAVE INCREASED INVESTMENTS IN ESG PROJECTS
    * REDUCED EXPECTATIONS TO NET REVENUE BECAUSE OF POOR
WEATHER IN
NORDICS IN JULY AUGUST AND WEAK NORWEGIAN AND SWEDISH KRONER
    * WE HAVE NOW MITIGATED INPUT PRICE INFLATION EXPERIENCED
SINCE
BEGINNING OF 2021
    * SALARY INCREASES, DRIVEN BY HIGHER LIVING COSTS, AND
INFLATION
MEANS WE WILL STILL NEED TO INCREASE PRICES GOING FORWARD
    * NET FINANCE EXPENSES, EXCLUDING CURRENCY RELATED LOSSES OR
GAINS, ARE EXPECTED TO BE AROUND DKK 200 MLN FOR FULL-YEAR
    * WE EXPECT AN EFFECTIVE TAX RATE OF AROUND 21% OF PROFIT
BEFORE
TAX, EXCLUDING RESULT AFTER TAX FROM INVESTMENTS IN ASSOCIATES.
    * WE EXPECT AFFORDABILITY TO REMAIN KEY FOCUS FOR CONSUMERS
DURING
REST OF 2023 AND OUR CHANNEL MIX TO BE SLIGHTLY NEGATIVE
    * CAPEX FOR 2023 IS EXPECTED TO BE AROUND 5-6% OF NET
REVENUE AS
WE HAVE INCREASED INVESTMENTS IN ESG PROJECTS
    * WE HAVE SEEN INFLATION IN INPUT COSTS SINCE BEGINNING OF
2021, I
AM PLEASED TO SAY WE HAVE REACHED AMBITION OF MITIGATING
ABSOLUTE INCREASE IN INPUT COSTS DURING Q2
    * CONSUMER BEHAVIOR HAS BEEN RELATIVELY UNCHANGED AND ROBUST
DURING H1, BUT WE EXPECT AFFORDABILITY TO REMAIN KEY FOCUS FOR
CONSUMERS DURING REST OF 2023

Source text for Eikon:  ID:nGNE9Sz5rt 
Further company coverage:  RBREW.CO 

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