Royal Unibrew slumps on outlook cut as consumers get wary

Royal Unibrew A/S

19/10/2022 08:13

** Shares in Royal Unibrew  RBREW.CO  fall 10% after the
Danish brewery cut its full year outlook on Tuesday, citing
inflation driven pressure on consumer behaviour
    ** Royal Unibrew lowers its FY EBIT guidance to 1.60 billion
Danish crowns ($211 million) against 1.70 billion-1.85 billion
seen earlier
    ** "We are experiencing unprecedented inflation that is both
impacting our cost levels, but also have an impact on consumers
and customers," the company said 
    ** It also reported a reduction in stocking levels among
Italian wholesalers
    ** Commentary on consumer pressures and Italian de-stocking
presents a negative read for all European-exposed beverage
companies, especially Carlsberg  CARLb.CO , J.P. Morgan analysts
say
    ** According to Jefferies, the profit warning, while
partially company-specific, points to an increased risk of a
change in consumer purchasing patterns
    ** The stock, poised for its worst day since March 2020,
falls 38% year to date
    ** Shares of Carlsberg slide 4% in morning trade, while
Finnish brewery Olvi  OLVAS.HE , which posted third quarter
results, also hit by rising inflation, are down 2%
($1 = 7.5678 Danish crowns)
 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@tr.com))