XCSE:RBREW ESEF Annual Report
ROYAL UNIBREW A/S (XCSE:RBREW)
ESEF Annual Report
2022-08-17
For: 2022-06-30
View Original
Added on
September 23, 2026
Company Announcement No 41/2022 - 17 August 2022
Interim Report for 1 January–30 June 2022 (H1)
Strong topline momentum in Q2 – full-year outlook maintained
• The organic development in the topline was very satisfactory
in Q2 2022, despite being up against relatively tough compa-
rable numbers from last year. This year, societies were without
COVID-19 restrictions during the second quarter resulting in an
organic volume growth of 5% (H1 2022: 2%).
• The price increases implemented during the first quarter of the
year had full effect in Q2 2022 leading to an organic net revenue
growth of 15% (H1 2022: 15%). Reported net revenue increased
by 40% in Q2 2022 (H1 2022: 38%) due to the acquisitions
made during the past 12 months.
• The second wave of input price increases, resulting from the
war in Ukraine, continued investments in the organization and
higher sales and marketing costs resulted in an organic EBIT
decline of 13% (H1 2022: -13%) to DKK 511 million (H1 2022: DKK
720 million). Reported EBIT only declined by 2%, as acquisitions
contributed by almost DKK 60 million in the quarter.
• Free cash flow was DKK 669 million (Q2 2021: DKK 785 million),
resulting in a first half-year free cash flow of DKK 310 million (H1
2021: DKK 683 million).
• The outlook for full-year 2022 net revenue of DKK 10,700-
11,700 million and EBIT of DKK 1,700-1,850 million is main-
tained.
CEO Lars Jensen comments:
“We delivered strong growth in the first
half of the year driven by a very strong re-opening of the On-Trade.
A solid double-digit price/mix effect was supported by higher sales
and marketing costs compared to last year, as well as group capa
-
bility building investments.
We are gaining market shares in most markets, and we have been
able to increase our EBITDA,. despite strong headwind from input
cost increases. The timelag between cost inflation and our ability
to increase prices creates a backlog of positive effects, which in H2
together with relatively lower discretionary spending wlll impact H2
performance positively.
We continue our path towards decarbonization. We are committed
to SBTi and are on track of implementing our roadmap to be scope
1 and 2 carbon emission free by 2025 as well as reducing scope 1, 2
and 3 carbon emissions by 50% by 2030. Installation of additional
heat pumps in Faxe, cutting at least 30% of the gas consumption
and reducing CO
2
emissions by 25% is an example.
Our recent agreement to acquire production capacity in North
America is another example of how we significantly reduce the CO
2
contribution from transportation. Changes in the geopolitical situ
-
ation and post-pandemic challenges support and even accelerate
our efforts to decarbonize,”
Lars Jensen continues.
Selected financial highlights and key ratios
mDKK
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
Volume
(Thousand hectoliters) 3,840 3,421 6,500 5,957 12,332
Organic volume growth
(%) 5 11 2 13 9
Net revenue 3,211 2,300 5,373 3,905 8,746
Organic net revenue
growth (%) 15 16 15 13 12
EBITDA 623 609 940 927 2,020
EBITDA margin (%) 19.4 26.5 17.5 23.7 23.1
EBIT 511 521 720 750 1,652
Organic EBIT growth (%) -13 0 -13 13 6
EBIT margin (%) 15.9 22.7 13.4 19.2 18.9
Profit before tax 851 526 1,046 749 1,647
Net profit for the period 772 417 926 594 1,298
Free cash flow 669 785 310 683 1,296
Net interest-bearing debt 4,416 2,618 3,536
ROIC incl. goodwill (%)* 15 21 19
ROIC excl. goodwill (%)* 24 34 32
NIBD/EBITDA (times)* 2.2 1.3 1.7
Equity ratio (%) 31 32 31
Earnings per share (EPS) 15.6 8.6 19.2 12.3 26.5
* Running 12-month
Financial highlights
The organic volume growth of 5% to 3.8 million hectolitres in
Q2 2022 was driven by Western Europe and International,
whereas Northern Europe’s volumes declined organically
by 2%. Italy grew significantly as we continued to perform
very strong in all three categories where we are present.
The On-Trade channel increased significantly across all
geographies as there were no restrictions in the second
quarter as opposed to last year. As consumers moved back
into On-Trade, the Off-Trade declined in all markets, Italy
excluded as Off-Trade volumes here increased by double-
digit percentages. For H1 2022, volumes increased to 6.5
million hectolitres corresponding to 9% growth, of which 2%
are from organic growth and around 7% from acquisitions.
Net revenue for Q2 2022 amounted to DKK3,211 million
compared to DKK 2,300 million for Q2 2021. This corre-
sponds to an organic growth of 15% driven by the higher
sales, implemented price increases and a positive chan-
nel-mix. The reported growth of 40% includes a significant
effect from acquisitions contributing around 25% with the
majority coming from the Norwegian acquisitions of Solera
(included since 17 September 2021) and Hansa Borg (included
since 25 May 2022). Net revenue for H1 2022 amounted to
DKK 5,373 million (H1 2021: DKK 3,905 million), corresponding
to an organic growth of 15%.
Earnings before interest and tax (EBIT) for Q2 2022 was
DKK 10 million lower than in Q2 2021, amounting to DKK 511
million (Q2 2021: DKK 521 million). The EBIT margin declined
by 6.8 percentage points to 15.9%. Mix changes contrib-
uted positively in the quarter, while acquisitions diluted the
margin by around 1.2 percentage points. The majority of the
by a negative development in working capital and higher
capex.
In H1 2022, net interest-bearing debt increased by DKK 880
million (H1 2021: DKK 425 million) compared to year-end
2021. The increase is primarily explained by the payment of
dividend to shareholders and share buy-backs of DKK 300
million. Calculated on a 12-months basis, NIBD/EBITDA was
2.2 (H1 2021: 1.3) and ROIC excluding goodwill was 24% (H1
2021: 34%).
Acquisitions
On 7 January 2022, Royal Unibrew agreed to acquire the
remaining 75% of Hansa Borg Bryggerier. On 13 May 2022,
the transaction was approved by the Norwegian Competi-
tion Authorities and the deal was closed on 25 May 2022.
The transaction is based on an enterprise value of around
NOK 2.6 billion (DKK 1.9 billion) for 100% of the company on
a debt free basis, and 10% of the transaction value was paid
in cash whereas the remainder of the transaction was paid in
shares. The already owned 25% of Hansa Borg was revalued
in connection with the transaction, resulting in an extraor-
dinary non-cash tax-free profit of DKK 360 million, which is
booked as part of financial items. Hansa Borg Bryggerier is
expected to generate normalized full-year revenue in 2022
of around NOK 1.4 billion with a normalized EBITDA of around
NOK 210 million. We expect the acquisition to contribute
around DKK 50 million to Royal Unibrew’s 2022 full-year EBIT
result (seven months of ownership), including integration and
restructuring costs.
H1
2020
H1
2021
H1
2022
200
320
440
560
680
800
EBIT
EBIT H1
(mDKK)
remaining margin decline is explained by the timelag between
input price inflation and our sales price increases. Higher
sales and marketing costs as well as higher discretionary
costs also diluted the margin as we continued with already
planned and booked sales supporting activities in Q2.
In H1 2022, EBIT was DKK 30 million lower than in H1
2021 and amounted to DKK 720 million (H1 2021: DKK 750
million). The organic decline was 13%, whereas the reported
decline was only 4% supported by a positive impact from the
acquisitions completed in the past year. The reported EBIT
margin declined by 5.8 percentage points, whereof around
1.2 percentage points was due to acquisitions. The majority
of the remaining margin decline is explained by the timelag
between input inflation and price increases. Higher sales and
marketing costs together with higher discretionary spending
also impacted the margin negatively.
The free cash flow for H1 2022 amounted to DKK 310 million
compared to DKK 683 million for H1 2021 and was impacted
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 2
On 15 July 2022, Royal Unibrew announced the agreement
to acquire 100% of the Toronto-based company Amsterdam
Brewery Co. Ltd. Closing is subject to customary prepara-
tions and is expected to close in Q3 2022. The acquisition is
based on an enterprise value of CAD 44 million (around DKK
250 million) on a debt free basis. Amsterdam Brewery has
normalized revenue of around CAD 34 million (around DKK
200 million) and a normalized annual EBITDA of around CAD
5 million (around DKK 28 million).
The announced acquisition of Aqua d’Or is still awaiting
approval from the Danish Competition Authorities, which is
now expected in Q4 this year. Aqua d’Or has normalized net
revenue of around DKK 180 million, which is not included in
the current outlook for the year.
Full-year outlook
We maintain our full-year outlook for revenue of DKK 10,700-
11,700 million and EBIT of DKK 1,700-1,850 million as set out
in company announcement no. 28/2022 of 25 May 2022.
The announced acquisitions of Aqua d’Or and Amsterdam
Brewery are not included in the outlook for 2022.
The price increases we implemented into most of our
markets during Q1 2022 were set out to neutralize the input
price inflation experienced during 2021 - Russia's invasion
of Ukraine started another wave of input price increases
impacting our cost base by an additional approx. DKK 300
million. As these cost increases came after the annual negoti-
ations with our customers were completed, we have imple-
mented a second round of price increases that will become
effective during Q3 2022. Additional costs will be carried by
us until we are able to increase prices towards our customers.
Input costs continue to increase and in particular the energy
prices have continued to move up in Q3, which at current
levels will lead to further sales price increases in Q4. The
timelag between cost inflation and sales price increases
towards customers has a negative impact of around DKK 200
million on 2022 EBIT, of which DKK 100 million was known
at the time of the initial outlook. Our sales price increases are
targeting a constant earnings per liter sold once implemented.
In total, our input costs, on a 12-month rolling basis, has now
increased by around DKK 0.8 billion compared to the begin-
ning of 2021.
The summer weather in the Nordic countries has been more
wet and less sunny than a normal year, and more people than
last year decided to travel in their holiday. We estimate this
will have a negative effect on EBIT in 2022 of around DKK 50
million.
We have seen the first signs of consumers shifting to
discount retail outlets where our assortment of premium
products is more narrow, and the lower end of the market
has relative more shelf space. We still see consumers going
for branded beverages, and we do not expect a significant
negative effect from downtrading, as unemployment rates
continue to be very low and economies strong in our key
markets.
The high level of macro economic uncertainty and the poten-
tial resulting impact on consumer behavior means that we are
taking actions to minimize discretionary spending in H2 2022.
We have not included any COVID-19 related restrictions on
the On-Trade for the remainder of the year. Consequently, the
profit in Q4 2022 is expected to be higher than in Q4 2021,
which was significantly impacted by strict restrictions and
actual lockdowns in our main markets.
We continue to expect capex for 2022 to be around 5% of
net revenue and tax around 21% of profit before tax, excluding
result after tax from investments in associates.
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 3
Contents
Profile
Royal Unibrew is a leading multi-beverage company
with strong local brand portfolios in our main
markets in the Nordic region, the Baltic countries,
Italy and France. In addition, our products are sold
in more than 65 countries in the rest of the world.
We strive to offer our customers a broad portfolio of high-
quality beverages, which accomodates our consumers’
demands across a wide range of categories, including
beer, malt beverages, soft drinks, energy drinks, cider/RTD,
juice, water, wine and spirits.
Our portfolio includes brands like Faxe Kondi, Original Long
drink, LemonSoda, Novelle, Faxe, Lorina, Vitamalt, Kalnapilis
etc., and in addition to our own brands, we offer license-
based international brands from PepsiCo and Heineken in
Northern Europe.
We want to be THE PREFERRED CHOICE as local
beverage partner that challenge the status quo by doing
better every day in a fun, agile and sustainable way,
creating good and enjoyable moments for our consumers.
Review
Highlights 1
Financial highlights and ratios 5
Management’s Review 7
Financial Review 9
Developments in Individual
Market Segments 12
Management’s Statement 15
Financial Calendar 16
Forward-looking Statements 16
Financial Statements
Income Statement 17
Statement of Comprehensive Income 17
Balance Sheet 18
Cash Flow Statement 19
Statement of Changes in Equity 20
Notes
1. Significant Accounting Policies;
Accounting Estimates
and Judgements 22
2. Assets and Derivative Financial
Instruments Measured at Fair Value 22
3. Segment Reporting 23
4. Cash Flow Statement 24
5. Acquisition of Enterprises 25
Quarterly Financial highlights
and ratios 29
Financial highlights and ratios for the
Period 1 January - 30 June 2018-2022 30
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 4
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
Volume (thousand hectolitres) 3,840 3,421 6,500 5,957 12,332
Organic volume growth (%) 5 11 2 13 9
Income Statement (mDKK)
Net revenue 3,211 2,300 5,373 3,905 8,746
Organic net revenue growth (%) 15 16 15 13 12
Earnings before interest, taxes,
depreciation and amorization (EBITDA) 623 609 940 927 2,020
EBITDA margin (%) 19.4 26.5 17.5 23.7 23.1
Earnings before interest and tax (EBIT) 511 521 720 750 1,652
Organic EBIT growth (%) -13 0 -13 13 6
EBIT margin (%) 15.9 22.7 13.4 19.2 18.9
Result after tax from investments in associates 355 14 351 15 37
Other financial income and expenses, net -15 -9 -25 -16 -42
Profit before tax 851 526 1,046 749 1,647
Net profit for the period 772 417 926 594 1,298
Balance Sheet (mDKK)
Non-current assets 11,143 7,123 8,771
Total assets 14,651 9,101 10,914
Equity 4,574 2,889 3,342
Net interest-bearing debt 4,416 2,618 3,536
Net working capital -1,080 -990 -1,102
Invested capital 9,815 5,908 7,450
Cash Flows (mDKK)
Operating activities 845 900 562 885 1,753
Investing activities -147 -97 -204 -166 -389
Payment of lease liabilities -29 -18 -48 -36 -68
Free cash flow 669 785 310 683 1,296
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
Share Ratios (DKK per share of DKK 2)
Earnings per share (EPS) 15.6 8.6 19.2 12.3 26.5
Free cash flow per share 13.5 16.3 6.2 14.2 26.4
Dividend per share 14.5
Period-end price per share 628.4 798.8 737.2
Financial ratios
Free cash flow as a percentage of net revenue (%) 21 34 6 17 15
Cash conversion (%) 87 188 33 115 100
Net interest-bearing debt/EBITDA* 2.2 1.3 1.7
Equity ratio (%) 31 32 31
* Running 12-months
Ratios comprised by the “Recommendations and Financial Ratios” issued by the Danish Society's Commitee for
accounting standards have been calculated according to the recommendations.
Financial highlights and ratios
5ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Financial Highlights and Ratios
ESG highlights and ratios
a)
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
PRODUCTION FIGURES
Production sites 14 9 14 9 14
Production volume, total million hl 3.2 3.1 5.8 5.7 11.5
ENVIRONMENT & CLIMATE
Purchased Electricity GWh 22.5 22.1 42.0 40.8 84.2
Natural gas GWh 26.0 25.0 52.2 51.7 99.5
Purchased Heat/steam/cooling GWh 7.7 7.1 18.2 17.9 33.5
Other GWh 0.6 0.3 1.5 0.8 3.1
Energy, total GWh 56.8 54.5 113.9 111.2 220.3
CO
2
from production (location based)* million kgCO
2
9.2 9.6 18.7 19.7 35.8
CO
2
from production (market based)** million kgCO
2
6.7 6.3 14.1 13.9 26.8
Total water consumption million hl 10.0 9.2 18.1 17.1 34.8
Total amount of wastewater discharged million hl 6.4 6.0 11.8 11.1 22.8
Hazardous waste million kg 0.0 0.0 0.0 0.0 0.0
Landfilled waste million kg 0.2 0.1 0.3 0.2 0.7
Incinerated waste million kg 0.2 0.2 0.4 0.3 0.6
Recycled waste million kg 1.4 1.2 2.7 2.4 5.5
Other waste*** million kg 0.9 0.8 1.4 1.2 0.0
Solid Waste, total million kg 2.6 2.4 4.8 4.1 6.8
Spent grain & yeast **** million kg 23.1 21.0 43.9 39.5 79.2
RELATIVE PRODUCTION FIGURES
Energy kWh/hl 17.6 17.5 19.5 19.5 19.2
CO
2
Kg CO
2
/hl 2.9 3.1 3.2 3.5 3.1
Water hl/hl 3.1 3.0 3.1 3.0 3.0
a)
The ESG scope does not yet include the acquisition of Hansa Borg which was closed on 25 May 2022
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
PACKAGING MATERIAL*****
Cans % 42.8 43.1 42.8 43.9 43.4
Returnable glass bottles % 2.4 2.7 2.4 2.4 2.4
Non returnable glass bottles % 9.2 8.8 9.6 8.8 9.1
PET % 35.6 35.8 35.6 35.8 36.0
KEGS % 2.8 1.9 2.8 1.3 2.0
Bulk % 0.4 0.2 0.4 0.1 0.3
Other % 6.4 7.5 6.4 7.5 6.8
PEOPLE WELL-BEING & DEVELOPMENT
Occupational Health & Safety
Total number of lost-time incidents (LTIs) Number 9 12 21 23 53
Lost time incident frequency 6.8 10.9 8.1 10.8 11.3
Number of Lost days Days 96 235 229 513 944
Lost day rate 73 214 88 241 202
Fatalities Number 0 0 0 0 0
Employee engagement
Employee turnover % 4.1 n/a 8.7 7.1 15.0
Leave of absence due to illness (not work related) % 0.7 n/a 1.8 2.8 3.8
Diversity
Percentage of employees by gender, total
Female % 27 n/a 27 25 26
Male % 73 n/a 73 75 74
Employees by gender, Int. Management teams
Female % 28 n/a 28 32 29
Male % 72 n/a 72 68 71
* Location based: Calculated CO
2
emission based on IEA country factors
** Market based: Subtracting CO
2
emission covered by green certificates
*** Other waste: Discarded product utilized for bioenergy, has not previously been reported
**** Revisit required due to change in accounting policy
***** Packaging material: Calculation based on hl sales volume
6
ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Management’s Review
Business Development
The first half of 2022, and especially the second quarter,
has been positively impacted by the re-opening of the
On-Trade, but also negatively affected by increasing input
costs. THE PREFERRED CHOICE strategy with focus on
structural growth areas continues to deliver strong solid
results.
The On-Trade was fully re-opened towards the end of Q1
2022 and the events business (festivals, concerts, sporting
events, etc.) has also returned in the second quarter
of 2022. The On-Trade in all countries was very strong
throughout Q2 2022 and grew over-all by double-digit
percentages, meaning that all markets were at least back at
2019 levels in the On-Trade business.
The flip side of the very strong On-Trade development was
that the very high volumes in the Off-Trade channel started
to roll back. Consequently, Off-Trade volumes declined
in all markets, except in Italy where it grew double-digit
percentages due to strong sales in both beer, CSD and
energy drinks.
Russia’s invasion of Ukraine initiated a second wave of input
price inflation resulting in significant increases in energy
prices and energy-intensive raw materials and packaging
formats.
The strong topline momentum achieved in the first half of
2022 is a result of our THE PREFERRED CHOICE strategy in
which we have selected six areas of focus where we expect
structural higher-than-market growth in the coming years.
The six areas are: energy drinks, cider/RTD’s, enhanced
waters, no/low sugar, no/low alcohol and premiumization in
general.
The energy drinks segment continues to grow significantly,
and in H1 2022 the growth amounted to 16% compared to
the same period in 2021. All markets are growing double-
digit percentages in energy drinks with especially high
growth in Italy, the Baltic countries and the International
business. It is still Denmark, France and Finland that
contribute most to the growth.
In the second quarter, a new can line was inaugurated and
commissioned at our factory in Faxe, Denmark. The can
capacity in Faxe thus expands by approx. 25%. The line also
adds new sustainable packaging solution opportunities that
will help us reduce our use of plastic.
ESG Development
The overall ESG performance has improved compared
to the same period last year. However, when looking at
efficiency, measured as energy and water consumed, and
CO
2
emitted per produced unit, the performance is below
full-year 2021 levels, which is mainly explained by the
NIBD NIBD/EBITDA (running 12 months)
0
1,000
2,000
3,000
4,000
5,000
0.0
0.5
1.0
1.5
2.0
2.5
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
NIBD and NIBD/EBITDA
(mDKK) (times)
EBITDA EBITDA margin
H1
2018
H1
2021
H1
2022
H1
2020
H1
2019
150
320
490
660
830
1,000
0
6
12
18
24
30
EBITDA and EBITDA MARGIN
(mDKK) (%)
Net revenue EBIT margin
5,500
6,500
7,500
8,500
9,500
10,500
15.0
16.5
18.0
19.5
21.0
22.5
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Revenue and EBIT margin running 12 months
(mDKK) (%)
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 7
colder months in H1 2022. Therefore, we expect that it will
be levelled out in H2 2022. Our lost time incident frequency
has decreased further in H1 2022, also when correcting for
inorganic growth, and we are now at 8.1 lost time inci-
dents per 1 million working hours. The severity measured
as the lost day rate shows a significant decrease as well. It
demonstrates that our increased training, information and
enhanced review and reporting is paying off.
We are on track with the plans regarding implementation of
our sustainable strategy. Mentionable is our aspiration to be
100% CO
2
emission free from our production sites in 2025.
To reach this target, we have established decarbonization
roadmaps with specific actions in all our markets; we have
just initiated implementation of additional heat pumps in
Faxe, reducing our energy consumption (gas) by at least
30%, corresponding to a 25% reduction in CO
2
emis-
sions; we continue our conversion of fossil-based gas to
bio-based gas utilizing our by-product spent grain in Lahti
Finland; our solar park in Denmark will be ready in 2022 as
planned. The changes we see in the geopolitical situation
and the post-pandemic challenges support and even accel-
erate our efforts to decarbonize.
In 2021, Royal Unibrew committed to the Science Based
Target initiative, and we are currently in the process of
establishing the full scope 3 footprint in addition to our
scope 1 and 2 footprints. We believe that the two targets,
we have set for decarbonization for 2025 and 2030, are
aligned with the requirements for limiting global tempera-
ture rise to 1.5
o
C as agreed in the 2015 Paris Accord.
Through engagement with our suppliers, we believe to be
equipped to reach the goals of reducing the supply chain
emissions (scope 1, 2 and 3) by 50% by 2030. The recent
agreement to acquire Amsterdam Brewery Co. Ltd. is also
supporting our sustainability strategy, as it will reduce our
CO
2
footprint significantly by reducing the transportation
needs for products sold in North America.
Furthermore, Royal Unibrew’s goal to provide 100% recy-
cled, recyclable or reusable packaging in 2025 has been
enhanced by the inauguration of a new filling line for cans in
Denmark enabling substitution or even elimination of plas-
tics by introducing cardboard solutions in our packaging
systems.
Status on share buy-back program
On 1 March 2022, Royal Unibrew launched a share buy-back
program of up to DKK 300 million for the period from 2
March 2022 to 30 June 2022 with the aim to adjust the
capital structure of Royal Unibrew A/S. The share buy-back
program was completed on 29 June 2022 with an accumu-
lated 490,335 shares acquired under the program at a total
cost of DKK 300 million. The share buy-back program was
carried out in accordance with the “Safe Harbour” method.
Part of the Hansa Borg transaction was paid in a combi-
nation of treasury shares (794,257) and new shares
(1,400,000). The capital increase corresponded to 2.87%
of the existing share capital in Royal U nib rew A/ S , and after
the capital increase, the share capital of Royal Unibrew A/S
amounts to DKK 100,400,000 nominal value divided into
50,200,000 shares of nominally DKK 2 per share.
At completion of the share buy-back program, Royal
Unibrew owned a total of 576,952 shares (of nominally
DKK 2), corresponding to 1.1% of the company’s total share
capital.
Launch of Long-Term Incentive Plan for key employees
In May 2022, Royal Unibrew launched a new share
based Long-Term Incentive Plan (LTIP) for selected key
employees for 2022.
The LITP implies the grant of a number of Performance
Share Units (PSU) to each key employee and are granted in
2022 for vesting in 2024.
Please find more information in company announcement no
27/2022 of 24 May 2022.
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 8
Financial Review
Income Statement
Q2
2022
Q2
2021
%
change
H1
2022
H1
2021
%
change
FY
2021
Volumes (tHL) 3,840 3,421 12 6,500 5,957 9 12,332
Net revenue (mDKK) 3,211 2,300 40 5,373 3,905 38 8,746
Gross Profit (mDKK) 1,485 1,178 26 2,436 1,926 26 4,256
Volumes for H1 2022 showed an aggregated sale of 6.5 million hectolitres of beverages, which
was 9% higher than the same period in 2021.
Net revenue for H1 2022 increased by 38% and amounted to DKK 5,373 million compared to
DKK 3,905 million for the same period in 2021. The net revenue increased in all segments due to
price increases and acquisitions.
The gross profit for H1 2022 was DKK 510 million above the H1 2021 figure and amounted
to DKK 2,436 million equivalent to a 26% increase (Q2 2022: 26%). The gross margin was
4.0 percentage points below the H1 2021 margin (Q2 2022: 5.0 pp) and represented 45.3%
compared to 49.3% for H1 2021. Gross profit per volume unit was 5.2% higher (Q2 2022: 4.3%
higher) than in 2021.
Q2
2022
Q2
2021
%
change
H1
2022
H1
2021
%
change
FY
2021
Sales and distribution expenses (mDKK) 841 547 54 1,455 976 49 2,189
Administrative expenses (mDKK) 133 110 21 261 200 31 415
Sales and distribution expenses for H1 2022 were DKK 479 million higher than the same period
in 2021 and amounted to DKK 1,455 million compared to DKK 976 million for H1 2021.
Administrative expenses for H1 2022 showed a DKK 61 million increase compared to the same
period in 2021 and amounted to DKK 261 million compared to DKK 200 million for H1 2021.
Advisory costs related to acquisitions are included in administrative expenses.
Q2
2022
Q2
2021
%
change
H1
2022
H1
2021
%
change
FY
2021
EBITDA (mDKK) 623 609 2 940 927 1 2,020
EBIT (mDKK) 511 521 -2 720 750 -4 1,652
Result after tax from investments (mDKK) 355 14 n/m 351 15 n/m 37
Net financial expenses (mDKK) -15 -9 67 -25 -16 56 -42
Earnings before interest, tax, depreciation and amortization (EBITDA) for H1 2022 showed a
DKK 13 million increase and amounted to DKK 940 million compared to DKK 927 million for H1
2021. In Q2 2022, EBITDA increased by DKK 14 million compared to the same period in 2021.
EBIT for H1 2022 amounted to DKK 720 million, which is DKK 30 million lower than the same
period in 2021, caused by the inflationary pressure on our costs and investments in our organi-
zation.
The EBIT margin for H1 2022 was 13.4% and declined by 5.8 percentage points compared to
H1 2021, whereof around 1.2 percentage points was due to acquisitions. Income after tax from
investments amount to DKK 351 million as the revaluation of the 25% ownership that Royal
Unibrew had in Hansa Borg led to a tax-free profit of DKK 360 million. Net Interest expenses for
H1 2022 at DKK 25 million were DKK 9 million above last year.
Q2
2022
Q2
2021
%
change
H1
2022
H1
2021
%
change
FY
2021
Profit before tax (mDKK) 851 526 62 1,046 749 40 1,647
Tax on Profit (mDKK) -79 -109 -28 -120 -155 -23 -349
Net profit (mDKK) 772 417 85 926 594 56 1,298
Earnings per share (DKK) 15.6 8.6 19.2 12.3 26.5
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 9
Profit before tax for H1 2022 was DKK 297 million higher than the same period in 2021 and
amounted to DKK 1,046 million compared to DKK 749 million for H1 2021 and was positively
impacted by the revaluation of the shares in Hansa Borg.
Tax on the profit for H1 2022 was an expense of DKK 120 million. The tax has been calculated on
the basis of an expected full-year tax rate of approx. 21% on the profit, excluding result after tax
from investments in associates.
The net profit for H1 2022 amounted to DKK 926 million, which is DKK 332 million higher
compared to H1 2021 figure. The earnings per share in H1 2022 increased to DKK 19.2 per share
compared to 12.3 for the same period in 2021, positively impacted by the revaluation of the
shares in Hansa Borg.
Balance Sheet
The balance sheet amounted to DKK 14,651 million at H1 2022 which is DKK 3,737 million above
year end 2021. The increase is mainly due to acquisitions in Norway (Solera and Hansa Borg).
H1
2022
H1
2021
%
change
H1
2022
FY
2021
%
change
Invested capital (mDKK) 9,815 5,908 67 9,815 7,450 32
Invested capital increased by DKK 2,365 million in the period from 31 December 2021 to 30
June 2022. ROIC excluding goodwill calculated on a running 12-month basis decreased by 10
percentage point to 24% in H1 2022. ROIC including goodwill decreased by 6 percentage point
to 15% by the end of H1 2022, impacted by the acquisitions.
H1
2022
H1
2021
Change
% point
H1
2022
FY
2021
Change
% point
ROIC incl. Goodwill (running 12-months) 15 21 -6 15 19 -4
ROIC excl. Goodwill (running 12-months) 24 34 -10 24 32 -8
Equity at the end of June 2022 amounted to DKK 4,574 million compared to DKK 3,342 million
at the end of 2021. The change in H1 2022 equity consists of positive comprehensive income
of DKK 920 million (H1 2021: 600 million) along with share-based payment of DKK 3 million,
net proceed from issue of new shares of DKK 824 million, change in minority shares of DKK 10
million and transfer of treasury shares of DKK 467 and negatively affected by paid out dividend
of DKK 692 million and share buy-back programs of DKK 300.
The equity ratio is unchanged compared to 31 December 2021 representing 31% on 30 June
2022.
H1
2022
H1
2021
%
change
H1
2022
FY
2021
%
change
Net Interrest Bearing Debt (NBID) (mDKK) 4,416 2,618 68 4,416 3,536 25
Net interest-bearing debt for H1 2022 showed a DKK 880 million increase (H1 2021: decrease
425 million) and amounted to DKK 4,416 million compared to DKK 3,536 million end of year
2021. Increase in net interest-bearing debt comprised the positive free cash flow of DKK 310
million net less DKK 18 million related to fixed asset investments, less dividend payments of
DKK 692 million, share buy-back of DKK 300 million, DKK 22 million related to acquisitions and
adjustment for DKK 158 million in net leasing facilities. The net interest-bearing debt to EBITDA
ratio (running 12-months basis) was 2.2 (H1 2021: 1.3).
Funds tied up in net working capital was DKK -1,080 million at the end of June 2022 (30 June
2021: DKK -990 million) compared to DKK -1,102 million at the end of 2021. Funds tied up in
working capital thus increased by DKK 22 million compared to end of 2021 (H1 2021: decrease
of DKK 115 million). Funds tied up in inventories, trade receivables and trade payables showed
an increase of DKK 678 million compared to end of 2021 (H1 2021: increase of DKK 232 million)
mainly due to higher debtors and impact from acquisitions, whereas funds tied up in the other
elements of working capital decreased by DKK 700 million affected by acquisitions (H1 2021:
decrease of DKK 347 million).
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 10
Cash Flow Statement
Cash flows from operating activities for H1 2022 amounted to DKK 562 million (H1 2021: DKK
885 million) comprising DKK 943 million (H1 2021: DKK 929 million) of profit for the period
adjusted for non-cash operating items, negative working capital of DKK 247 million (H1 2021: a
positive DKK 81 million), net interest paid of DKK 26 million (H1 2021: DKK 16 million) and taxes
paid of DKK 108 million (H1 2021: DKK 109 million). The development in working capital has been
negatively affected by increased receivables in Western Europe, as well as negative impact
from acquisitions.
The free cash flow for H1 2022 amounted to DKK 310 million, which was a decrease of DKK
373 million compared to H1 2021. In H1 2022, cash flows from operating activities showed
a DKK 323 million decrease compared to H1 2021 and net investments in property, plant and
equipment showed a DKK 53 million increase, and acquisitions DKK 12. Dividend received from
associates increased DKK 15 million.
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 11
Northern Europe
Q2
2022
Q2
2021
%
change
H1
2022
H1
2021
%
change
FY
2021
Volumes (Thousand hectolitres) 2.874 2.701 6 4.897 4.667 5 9.678
Organic volume growth (%) -2 7 -2 10 6
Net revenue (mDKK) 2.444 1.729 41 4.052 2.878 41 6.605
Organic net revenue growth (%) 11 11 12 8 8
EBIT (mDKK) 537 543 -1 1.249
Organic EBIT growth (%) -9 3 3
EBIT margin (%) 13,3 18,9 18,9
Net revenue (mDKK) - selected
countries
Q2
2022
Q2
2021
%
change
H1
2022
H1
2021
%
change
FY
2021
Denmark 866 779 11 1.494 1.302 15 2.814
Finland 855 704 21 1.405 1.168 20 2.569
Norway 356 1 n/m 535 2 n/m 277
Sweden 112 6 n/m 188 10 n/m 118
Baltics 256 239 7 429 398 8 827
The Northern Europe segment consists of our multi-beverage businesses in Finland, Norway,
Sweden, the Baltic countries, Denmark and Germany. Northern Europe accounted for 75% of
both group volumes and net revenue in H1 2022 (H1 2021: 78% and 74%, respectively).
In Q2 2022, volumes increased by 6% in Northern Europe compared to the same period in
2021, resulting in a 5% increase in H1 2022. Adjusting for acquisitions, the organic volume
growth rates were -2% for Q2 2022 and -2% for H1 2022. Net revenue increased by 41% in the
quarter and net revenue for H1 2022 was 41% above 2021. The organic growth was 11% for the
quarter and 12% for the first half of 2022.
The strong topline momentum is a combination of the re-opening of the On-Trade and the price
increases implemented during Q1 2022.
The reported EBIT margin in H1 2022 decreased by 5.6 percentage points y/y to 13.3%. The
organic EBIT margin declined by 3.5 percentage points to 15.3% in H1 2022.
EBIT for H1 2022 declined by DKK 4 million to DKK 537 million. The weaker profitability is due to
higher input costs, costs related to acquisitions as well as the result of the investments we have
done to strengthen the organization.
The development in Denmark and Germany was positively impacted by the re-opening of
the On-Trade, but negatively impacted by a declining Off-Trade as consumers has shifted
consumption towards more out-of-home occasions as well as Of-Trade sales has moved back
to the Border. Overall beer and CSD sales developed flattish in H1 2022, while energy drinks and
cider/RTD’s grew by double-digit percentages.
The second quarter of the year also marked the first quarter in two years with the events
business back at 2019 levels. The re-start of festivals, concerts, sports and other cultural events
have clearly supported the strong topline momentum, as people has been very eager to get out
and enjoy life again after two years of restrictions.
Royal Unibrew was once again voted “best supplier” at head office level by Danish grocery retail,
and won the “Shopper Marketing Excellence of the year" award at MLDK (Branded Manufac-
turers Association), an award given by customers and colleagues for the category work within
craft beer and no/low alcohol at one of our retail customers.
Together with the food waste app, TooGoodToGo, and local football fan clubs, an attempt to
reduce food waste was carried out. Products close to the “best before” date was sold with a
Developments in Individual Market Segments
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 12
discount to the fan clubs’ members to secure that the products did not become obsolete and
wasted.
Towards the end of Q2 2022, the Danish organization closed an international distribution
agreement with Rebæl to sell and distribute their high-end and super premium hand-brewed
lemonade, gastrojuice and cocktails.
In Finland, the On-Trade re-opening contributed positively to the volume development in
both Q2 and H1 2022, but a decline in Off-Trade sales resulted in an overall volume decline for
H1 2022. Volumes increased in the second quarter. Cider/RTD continues to perform well, and
volumes grew by double-digits in the first half of 2022. Product launches within the Novelle
brand continues to build the brand, and our water category grew mid-single-digit percentages
in Q2 as well as the first half of 2022. Beer volumes declined in H1 2022, because we partici-
pated in an extraordinary beer campaign in Q1 2021.
Our iconic RTD brand, Original Long Drink, is turning 70 years old this year, and the brand is
stronger than ever in the market. It is among other things celebrated by the release of new
flavors, whereas the official birthday was celebrated in August at the Flow Festival in Helsinki.
Solera Finland was integrated into the Finnish business during the first half of 2022 and is now
on our IT platform, which means that we also start to see the first synergies realized.
The Baltic countries had a strong underlying development when adjusted for the missing
sale to Russia. The focus on high margin products resulted in double-digit percentage growth
in both energy drinks and cider/RTD in H1 2022, and our market share within these categories
continues to increase.
In Norway and Sweden, the integration of Solera and Hansa Borg is progressing as planned.
In Norway, we have set the management team for the combined business of Hansa Borg and
Solera Norway and have started to build the commercial plans for the business. Hansa Borg has
gained share in beer during H1 2022. In Sweden, we continue to invest in strengthening and
future proofing the organization.
Western Europe
Q2
2022
Q2
2021
%
change
H1
2022
H1
2021
%
change
FY
2021
Volumes (Thousand hectolitres) 601 391 54 924 621 49 1.346
Organic volume growth (%) 42 41 35 27 23
Net revenue (mDKK) 456 331 38 762 542 41 1.168
Organic net revenue growth (%) 26 53 28 34 26
EBIT (mDKK) 129 124 4 242
Organic EBIT growth (%) -16 87 28
EBIT margin (%) 16,9 22,9 20,7
Western Europe consists of our multi-niche businesses in Italy and France and accounted for
14% of both group volumes and net revenue in H1 2022 (H1 2021: 10% of volumes and 14% of
net revenue).
In Q2 2022, volumes increased by 54% in Western Europe compared to the same period in
2021, resulting in a 49% increase in H1 2022. Adjusting for acquisitions, the organic volume
growth rates were 42% for Q2 2022 and 35% for H1 2022. Net revenue increased by 38% in the
quarter, meaning that net revenue for H1 2022 was 41% above 2021. Adjusted for acquisitions,
the organic growth was 26% for the quarter and 28% for the first half of 2022.
Both On- and Off-Trade is up against first half of 2021, but the very strong growth has also been
accompanied by higher cost.
The reported EBIT margin in H1 2022 decreased by 6 percentage points y/y to 16.9%. The
organic EBIT margin declined by 7.9 percentage points to 15.0% in H1 2022.
EBIT for H1 2022 increased by DKK 5 million to DKK 129 million. The weaker profitability is due
to higher input costs, including transportation costs, as well as the result of the investments we
have done to strengthen the brands and the organization.
In Italy, we continue to grow our business in all categories and all channels. In the first half of
2022, we more than doubled our energy drinks volumes compared to the first half of 2021. We
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 13
are now a clear number three in the Italian market with our Lemonsoda Energy Activator with a
market share of 4%. Both our super premium beer brand, Ceres, and our Lemonsoda CSD range
grew by double-digit percentages in H1 2022. We continue to be the market leader in the lemon
segment in the Italian CSD market.
Our energy drinks business in France continues to grow. The Lorina lemonade business
declined in H1 2022 as consumption moved from retail to On-Trade where Lorina has limited
presence. We have completed the integration and merger of our three companies in France,
and the merged organization is now ready and prepared to focus entirely on growing our french
activities.
International
Q2
2022
Q2
2021
%
change
H1
2022
H1
2021
%
change
FY
2021
Volumes (Thousand hectolitres) 364 328 11 679 669 2 1.308
Organic volume growth (%) 11 15 2 23 21
Net revenue (mDKK) 310 240 29 560 485 15 973
Organic net revenue growth (%) 29 16 15 21 21
EBIT (mDKK) 67 95 -30 183
Organic EBIT growth (%) -29 18 7
EBIT margin (%) 12,0 19,6 18,9
The International segment comprises the export and license business in markets outside
Denmark, Finland, Norway, Sweden, Italy, France and the Baltic countries. In H1 2022, Inter-
national accounted for 10% of group volumes and 10% of group net revenue (H1 2021: 11% and
12%, respectively).
Volumes for H1 2022 showed a 2% increase, whereas net revenue increased by 15%. Growth
was higher in Q2 2022 at 11% and 29%, respectively. The acceleration in growth rates,
compared to recent quarters, magnifies the potential we see in the International markets, as
the segment still suffers from being down-prioritized due to capacity constrains in our supply-
chain. As a result, customer stocks have been lowered during H1 2022, as sales-out continues
to be higher than sell-in, keeping stock levels below normal.
EBIT for H1 2022 amounted to DKK 67 million, which was DKK 28 million below the H1 2021
result. The margin decline from 19.6% to 12.0% in H1 2022 is driven by higher raw material and
logistic costs.
Our African beer business and our malt beverage business continues to grow in H1 2022 at the
same time as our North American business showed strong growth across all key categories.
After the end of Q2 2022, on 15 July 2022, the agreement to acquire 100% of the Toron-
to-based Amsterdam Brewery Co. Ltd. Our North American business has grown over recent
years but is currently challenged by high freight costs and longer and more unpredictable logis-
tical supply chains. The export business model has had natural limitations on both breadth and
depth of the offered product portfolio and local production capacity will make us a more flexible
supplier.
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 14
Executive Management
Lars Jensen Lars Vestergaard
President & CEO CFO
Board of Directors
Peter Ruzicka Jais Valeur
Chairman Deputy Chairman
Martin Alsø Torben Carlsen
Michael Nielsen Heidi Kleinbach-Sauter
Claus Kærgaard Christian Sagild
Catharina Stackelberg-Hammarén
Management's Statement
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 15
For further information on this Announcement:
Investor Relations, Jonas Guldborg Hansen, tel. +45 20 10 12 45
It will be possible for investors and analysts to follow Royal Unibrew’s presentation of the
Interim Report on Thursday, 18 August 2022, at 9.00 am CEST by notified webcast conference:
Telephone conference
Access details for participants:
http://services.choruscall.it/DiamondPassRegistration/register?confirmationNum-
ber=2612873&linkSecurityString=2eb3ccbae
Webcast Player URL
https://edge.media-server.com/mmc/p/pr53tn9j
Financial Calendar for 2022
8 November 2022 Trading statement for the period 1 January - 30 September 2022
Forward-looking Statements
This Interim Report contains forward-looking statements, including statements
about the Group’s sales, revenue, earnings, spending, margins, cash flows, inven-
tories, products, actions, plans, strategies, objectives and guidance with respect to
the Group’s future operating results. Forward-looking statements include, without
limitation, any statement that may predict, forecast, indicate or imply future results,
performance or achievements, and may contain the following words or phrases
“believe, anticipate, expect, estimate, intend, plan, project, will be, will continue, likely
to result, could, may, might”, or any variations of such words or other words with
similar meanings. Any such statements involve known and unknown risks, esti-
mates, assumptions and uncertainties that could cause the Group’s actual results,
performance or industry results to differ materially from the results expressed or
implied in such forward-looking statements. Royal Unibrew assumes no obligation
to update or adjust any such forward-looking statements (except for as required
under the disclosure requirements for listed companies) to reflect actual results,
changes in assumptions or changes in other factors affecting such forward-
looking statements.
Some important risk factors that may have direct bearing on the Group’s actual
results include, but are not limited to: economic and political uncertainty (including
interest rates and exchange rates), financial and regulatory developments, devel-
opment in the demand for the Group’s products, introduction of and demand
for new products, changes in the competitive environment and the industry in
which the Group operates, changes in consumer preferences, increasing industry
consolidation, the availability and pricing of raw materials and packaging materials,
cost of energy, production- and distribution-related issues, information technology
failures, breach or unexpected termination of contracts, price reductions resulting
from market-driven price reductions, determination of fair value in the opening
balance sheet of acquired entities, litigation, pandemic, environmental issues and
other unforeseen factors.
New risk factors may emerge in the future, which the Group cannot predict.
Furthermore, the Group cannot assess the impact of each factor on the Group’s
business or the extent to which any individual risk factor, or combination of factors,
may cause results to differ materially from those contained in any forward-looking
statement. Accordingly, forward-looking statements should not be relied on as a
prediction of actual results.
ROYAL UNIBREW Interim report for 1 January - 30 June 2022 16
Consolidated Income Statement
mDKK
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
Net revenue 3,211 2,300 5,373 3,905 8,746
Production costs -1,726 -1,122 -2,937 -1,979 -4,490
Gross profit 1,485 1,178 2,436 1,926 4,256
Sales and distribution expenses -841 -547 -1,455 -976 -2,189
Administrative expenses -133 -110 -261 -200 -415
EBIT 511 521 720 750 1,652
Income after tax from investments in associates -5 14 -9 15 37
Gain on remeasurement of investments in associates 360 0 360 0 0
Financial income -2 0 1 3 7
Financial expenses -13 -9 -26 -19 -49
Profit before tax 851 526 1,046 749 1,647
Tax on the profit for the period -79 -109 -120 -155 -349
Net profit for the period 772 417 926 594 1,298
Profit for the period is attributable to:
Equity holders of Royal Unibrew A/S 772 417 927 595 1,299
Non-controlling interests 0 0 -1 -1 -1
Net profit for the period 772 417 926 594 1,298
Earnings per share (DKK) 15.6 8.6 19.2 12.3 26.5
Diluted earnings per share (DKK) 15.6 8.6 19.2 12.3 26.5
mDKK
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
Net profit for the period 772 417 926 594 1,298
Other comprehensive income
Items that may be reclassified to the income statement:
Exchange adjustments of foreign group enterprises 9 -4 12 3 6
Value adjustment of hedging instruments -66 0 -19 3 5
Tax on value adjustment of hedging instruments 1 1 1 0 -2
Tot al -56 -3 -6 6 9
Items that may not be reclassified to the income statement:
Actuarial gain on pension schemes 0 0 0 0 3
Tot al 0 0 0 0 3
Other comprehensive income after tax -56 -3 -6 6 12
Total comprehensive income 716 414 920 600 1,310
Comprehensive income for the period is attributable to:
Equity holders of Royal Unibrew A/S -716 415 921 601 1,311
Non-controlling interests 0 -1 -1 -1 -1
Net profit for the period 716 414 920 600 1,310
17ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Consolidated Balance Sheet
Assets
mDKK 30/6 2022 30/6 2021 31/12 2021
NON-CURRENT ASSETS
Intangible assets 7,449 4,411 5,861
Property, plant and equipment 3,532 2,556 2,734
Investments in associates 93 138 153
Other non-current investments 69 18 23
Non-current assets 11,143 7,123 8,771
CURRENT ASSETS
Inventories 1,187 635 780
Receivables 2,018 1,223 1,188
Prepayments 117 70 89
Cash and cash equivalents 186 50 86
Current assets 3,508 1,978 2,143
Assets 14,651 9,101 10,914
Liabilities and Equity
mDKK 30/6 2022 30/6 2021 31/12 2021
EQUITY
Share capital 100 98 98
Other reserves 1,534 717 716
Retained earnings 2,940 2,061 1,808
Proposed dividend 0 0 708
Equity contributable to equity holders
of Royal Unibrew A/S 4,574 2,876 3,330
Non-controlling interests 0 13 12
Equity 4,574 2,889 3,342
LIABILITIES
Non-current liabilities
Deferred tax 987 557 747
Mortgage debt 985 831 1,003
Credit institutions 1,739 982 1,995
Other payables 28 17 26
Non-current liabilities 3,739 2,387 3,771
Current liabilities
Mortgage debt 30 17 14
Credit institutions 1,848 838 610
Trade payables 2,280 1,517 1,721
Provisions 10 10 11
Corporation tax 61 52 18
Other payables 2,109 1,391 1,427
Current liabilities 6,338 3,825 3,801
Liabilities 10,077 6,212 7,572
Liabilities and equity 14,651 9,101 10,914
18ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Consolidated Cash Flow Statement
for 1 January - 30 June
mDKK
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
Net profit for the period 771 417 926 594 1,298
Adjustments for non-cash operating items: -147 193 17 335 726
Change in working capital 288 338 -247 81 104
Net paid financial expenses and income -17 -8 -26 -15 -42
Financial expenses related to leasing 0 0 0 -1 -1
Corporation tax paid -50 -40 -108 -109 -332
Cash flows from operating activities 845 900 562 885 1,753
Dividend received from associates 3 1 27 12 21
Sale of property, plant and equipment 2 4 3 5 16
Purchase of property, plant and equipment -152 -102 -234 -183 -426
Acquisition of enterprises -24 -3 -24 -10 -1,218
Purchase/sale of intangible assets and fixed asset investments -17 0 -18 1 3
Cash flows from investing activities -188 -100 -246 -175 -1,604
External financing 353 59 822 284 1.161
Repayment on leasing facilities -29 -18 -48 -36 -68
Dividend paid to shareholders -692 -657 -692 -657 -653
Dividends to minority shareholders 0 0 0 0 -4
Acquisition of shares for treasury -200 -190 -300 -332 -582
Cash flows from financing activities -568 -806 -218 -741 -146
mDKK
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
Change in cash and cash equivalents 89 -6 98 -31 3
Cash and cash equivalents at beginning 97 57 86 81 81
Exchange adjustment 0 -1 2 0 2
Cash and cash equivalents at 30 June 2022 188 50 186 50 86
Free cash flow
Net cash from operating activities 845 900 562 885 1,753
Net cash used in investing activities -147 -97 -204 -166 -389
Payment of lease liabilities -29 -18 -48 -36 -68
Free cash flow 669 785 310 683 1,296
19ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Consolidated Statement of Changes in Equity
for 1 January - 30 June
mDKK
Share
capital
Share
premium
account
Translation
reserve
Hedging
reserve
Total other
reserves
Retained
earnings
Proposed
dividend for
the year
Parent
Company
share of equity
Minority
share Tot al
Equity at 31 December 2021 98 753 -47 13 719 1,805 708 3,330 12 3,342
Changes in equity in 2022
Net profit for the year 0 927 927 -1 926
Other comprehensive income 12 -19 -7 -7 -7
Tax on other comprehensive income 0 1 1 1
Total comprehensive income 0 0 12 -19 -7 928 0 921 -1 920
Capital increase 2 1,063 1,063 1,065 0 1,065
Capital increase adjustment to fair value -241 -241 -241 0 -241
Minority's share of sold business 0 21 21 -11 10
Dividends paid to shareholders 0 -692 -692 -692
Dividend on treasury shares 0 16 -16 0 0
Acquisition of shares for treasury 0 -300 -300 -300
Transfer of treasury shares as acquisition of
enterprise 0 467 467 0 467
Proposed dividend 0 0 0 0
Capital reduction 0 0 0 0
Share-based payments 0 3 3 3
Minority share transaktions 0 0 0
Tax on changes in equity, shareholders 0 0 0
Total shareholders 2 822 0 0 822 207 -708 323 -11 312
Total changes in equity 1/1-30/6 2022 2 822 12 -19 815 1,135 -708 1,244 -12 1,232
Equity at 30 June 2022 100 1,575 -35 -6 1,534 2,940 0 4,574 0 4,574
The share capital at 30 June 2022 amounts to DKK 100,400,000 (2021: DKK 97,600,000 ) and is distributed on shares of DKK 2 each.
20ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Consolidated Statement of Changes in Equity
for 1 January - 30 June 2021
mDKK
Share
capital
Share
premium
account
Translation
reserve
Hedging
reserve
Total other
reserves
Retained
earnings
Proposed
dividend for
the year
Parent
Company
share of equity
Minority
share Tot al
Equity at 31 December 2020 99 761 -53 8 716 1,827 666 3,308 24 3,332
Changes in equity in 2021
Net profit for the year 0 595 595 -1 594
Other comprehensive income 6 3 9 -3 6 6
Total comprehensive income 0 0 6 3 9 592 0 601 -1 600
Dividends paid to shareholders 0 -654 -654 -3 -657
Dividend on treasury shares 0 12 -12 0 0
Change in liability to minority shareholders 0 -49 -49 -7 -56
Acquisition of shares for treasury 0 -332 -332 -332
Capital reduction -1 -8 -8 9 0 0
Share-based payments 0 2 2 2
Total shareholders -1 -8 0 0 -8 -358 -666 -1,033 -10 -1,043
Total changes in equity 1/1-30/6 2021 -1 -8 6 3 1 234 -666 -432 -11 -443
Equity at 30 June 2021 98 753 -47 11 717 2,061 0 2,876 13 2,889
21ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Notes to the Interim Report
Note 1 Significant Accounting Policies; Accounting Estimates and Judgements
The Interim Report is presented in accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU
and additional Danish disclosure requirements for interim financial reporting of listed companies.
The Annual Report for 2021 provides the total description of accounting policies significant to the Financial
Statements.
Accounting Estimates and Judgements
The preparation of interim financial reporting requires that Management make accounting estimates and
judgements which affect the application of accounting policies and recognized assets, liabilities, income and
expenses. Actual results may deviate from these estimates.
Change in segment reporting
Compared to the Annual Report 2021, the segmentation has been changed in 2022 as a result of the acquisi-
tions made end of 2021 and in 2022.
New segments are Northern Europe, Western Europe and International. Northern Europe will include Finland,
Norway, Sweden, the Baltic countries, Denmark and Germany.
Western Europe will include Italy and France, whereas International will continue being the businesses outside
of these key markets
Please find more information on page 23
Note 2 Assets and Derivative Financial Instruments Measured at Fair Value
mDKK 30/6 2022 30/6 2021 31/12 2021
Derivative financial instruments -6 11 13
Derivative financial instruments are classified as level-2 instruments in the IFRS fair value hierarchy. The deter-
mined fair value of derivative financial instruments is based on observable market data such as yield curves or
forward rates.
The fair value of the total debt is assessed to correspond to carrying amount.
22ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Note 3 Segment Reporting
The Group’s results break down as follows on segments:
H1 2022
mDKK
Northern
Europe
Western
Europe
Inter-
national
Un-
allocated Tot a l
Net revenue 4,052 762 560 5,373
Earnings before interest and tax (EBIT) 537 129 67 -13 720
Share of income from associates 351 351
Other financial income and expenses -18 -5 0 -2 -25
Profit/loss before tax for the period 870 125 66 -15 1,046
Tax on the profit/loss for the period -120 -120
Net profit for the period 926
EBIT margin, % 13.3 16.9 12.0 13.4
Volumes, beverages (thousand hectolitres) 4,897 924 679 6,500
Notes to the Interim Report
H1 2021
mDKK
Northern
Europe
Western
Europe
Inter-
national
Un-
allocated Tot a l
Net revenue 2,878 542 485 3,905
Earnings before interest and tax (EBIT) 543 124 95 -11 750
Share of income from associates 15 15
Other financial income and expenses -4 -1 0 -11 -16
Profit/loss before tax for the period 552 123 95 -22 749
Tax on the profit/loss for the period -155 -155
Net profit for the period 594
EBIT margin, % 18.9 29.9 19.6 19.2
Volumes, beverages (thousand hectolitres) 4,667 621 669 5,957
23ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Notes to the Interim Report
Note 4 Cash Flow Statement
mDKK
H1
2022
H1
2021
FY
2021
Adjustments for non-cash operating items
Financial income -1 -3 -7
Financial expenses 26 19 49
Amortization, depreciation and impairment of
intangible assets and property, plant and equipment 221 181 381
Tax on the profit for the period 120 155 349
Result from investments in associates 9 -15 -37
Gain on remeasurements -360 0 0
Profit and loss on sale of property, plant and equipment -1 -4 -13
Share-based remuneration and payments 3 2 4
Tot al 17 335 726
Note 3 Segment Reporting (continued)
The Group’s results break down as follows on segments:
FY 2021
mDKK
Northern
Europe
Western
Europe
Inter-
national
Un-
allocated Tot a l
Net revenue 6,605 1,168 973 8,746
Earnings before interest and tax (EBIT) 1,249 242 183 -23 1,652
Share of income from associates 37 37
Other financial income and expenses -17 -6 0 -19 -42
Profit/loss before tax for the period 1,269 238 184 -42 1,647
Tax on the profit/loss for the period -349 -349
Net profit for the period 1,298
EBIT margin, % 18.9 20.8 18.8 18.9
Volumes, beverages (thousand hectolitres) 9,678 1,346 1,308 12,332
24ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Note 5 Acquisition and disposal of subsidiaries and activities
Acquisitions in H1 2022
The purchase price allocation for the Hansa Borg acquisition is considered provisional due to the fact that the
transaction was closed on 25 May 2022, leaving limited time to identify and determine fair value of assets
acquired and liabilities assumed. On 7 January 2022, Royal Unibrew A/S entered into an agreement to acquire
the remaining 75% of Hansa Borg Bryggerier, of which Royal Unibrew already had 25% ownership, resulting in
a 100% ownership of the company. The acquisition was completed on 25 May 2022. Hansa Borg Bryggerier is
Norway’s second largest brewery and beverage company with four breweries and one bottling plant throughout
the country and products ranging from beers to ciders, CSD's, waters and wines for the Norwegian market.
Together with Solera Beverage Group, which Royal Unibrew acquired in September 2021, Hansa Borg Bryggerier
is strategically very important for our Norwegian business as it, in combination with Solera, will create a strong
player with a very strong beverage portfolio in Norway and thereby strengthen our multi beverage presence.
The transaction is based on an enterprise value (at signing) of NOK 3.3 billion. With the share price at closing
(587) the final enterprise value for 100% of the company was NOK 2.6 billion (DKK 1.9 billion) Hansa Borg Bryg-
gerier is expected to generate normalized full-year revenue in 2022 of around NOK 1.4 billion with a normalized
EBITDA of around NOK 210 million, resulting in an acquisition multiple (EV/EBITDA) of 12.4 times at closing. The
already owned 25% of Hansa Borg was revalued in connection with the transaction, resulting in a non-cash
tax-free remeasurement of DKK 360 million
According to the agreement, 10% of the payment, corresponding to NOK 224 million (DKK 162 million), was paid
in cash, while the remaining 90% of the payment was paid in Royal Unibrew shares (2,194,257 shares).
The acquisition price exceeding the fair value of the acquired assets, liabilities and contingent liabilities. The
difference is the expected value of synergies and future growth opportunities. Synergies are not recognized
separately from goodwill. Goodwill is not eligible for tax depreciation.
Royal Unibrew A/S has incurred transaction costs relating to the acquisitions of approx. DKK 5 million for finan-
cial and legal advisors in connection with the realization of the transaction. The costs are recognized as admin-
istrative expenses and split equally in 2021 and 2022.
The acquisition has been included in the Consolidated Financial Statements of Royal Unibrew as of the date of
acquisition. Royal Unibrew has made the following calculation of the fair value of the acquired net assets and of
goodwill at the time of the acquisition.
mDKK
Trademarks 731
Distributions rights 42
Customer relations 73
Property, plant and equipment 629
Inventories 143
Receivables 238
Prepayments 29
Deferred tax -269
Debt including leasing -34
Trade payables -101
Other payables -499
Acquired net assets 982
Goodwill 814
Estimated fair value of the business 1,796
Acquired cash at bank and in hand 138
Total acquistion price 1,934
Fair value of existing 25% shareholding -483
Total acquistion price 1,451
Transfer of;
Issue of new shares 824
Treasury shares 467
Cash 162
Total consideration, 75% shareholding 1,451
Number of employees 296
The receivables acquired include trade receivables of a fair value of DKK 180 million corresponding to the gross
amount receivable according to contract.
Acquisition after the reporting period
On 15 July 2022, Royal Unibrew announced the agreement to acquire 100% of the Toronto-based company
Amsterdam Brewery Co. Ltd. Closing is subject to customary preparations and is expected to close in
Q3 2022. The acquisition is based on an enterprise value of CAD 44 million (around DKK 250 million) on
a debt free basis. Amsterdam Brewery has normalized revenue of around CAD 34 million (around DKK
200 million) and a normalized annual EBITDA of around CAD 5 million (around DKK 28 million).
Notes to the Interim Report
25ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Note 5 Acquisition and disposal of subsidiaries and activities (continued)
Acquisitions in 2021
A Finnish micro brewery
On 11 February 2021, Royal Unibrew's finnish subsidiary, Hartwall, acquired the assets in Helsinki brewery, which
strengthens Hartwall's flexibilty and dedication to local craft and speciality beer further.
Bryggeri Helsinki will continue as an entrepreneur-driven brewery restaurant.
A Danish brewery and a softdrink company
On 29 April 2021, Royal Unibrew entered into an agreement to acquire 100% of the shares in the Danish compa-
nies Bryggeriet S.C. Fuglsang A/S and Mineralvandsfabrikken Frem A/S. The acquisition was completed on 29.
April 2021.
The companies are primarily doing business in the southern part of Jutland based on local, wellknown beer- and
CSD brands with a 150 year long history.
The companies were merged with Royal Unibrew at the closing date, and fully integrated into Royal Unibrew
systems.
An Estonian micro brewery
On 14 September 2021, Royal Unibrew's Estonian subsidiary, Royal Unibrew Eesti, acquired 100% of the shares
in Tanker brewery. The acquisition will strengthen the local footprint in Estonian market through an authentic
super premium local beer brand and support full scale multi beverages strategy implementation in the region.
Transaction costs and consolidation
Royal Unibrew A/S has incurred transaction costs relating to the acquisitions of approx. DKK 1 million for legal
advisors in connection with the realization of the three transactions. The costs are recognized as administrative
expenses in 2021.
The three acquisitions have been included in the Consolidated Financial Statements of Royal Unibrew as of the
date of acquisition.
Royal Unibrew has made the following calculation of the fair value of the acquired net assets and of goodwill at
the time of acquisitions.
mDKK
Intangibles 33
Property, plant and equipment 19
Inventories 21
Receivables 15
Prepayments 1
Deferred tax -1
Trade payables -4
Other payables -9
Acquired net assets 75
Goodwill 11
Estimated fair value of the business 86
Acquired cash at bank and in hand -40
Cash consideration 47
Number of employees 70
The receivables acquired include trade receivables of a fair value of DKK 8 million corresponding to the gross
amount receivable according to contract.
Notes to the Interim Report
26ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Note 5 Acquisition and disposal of subsidiaries and activities (continued)
Acquisition of MC Energy (A French energy drinks brand)
On 1 July 2021, Royal Unibrew's French subsidiary, Etablissement Geyer-Fréres S.A, entered into an agreement
to acquire the French beverage company MC Energy S.A.S. The acquisition was completed on 7 July 2021.
MC Energy owns the energy brand Crazy Tiger that holds a 11% volume market share in the French Off-Trade
market. The acquisition marks the entry into one of the categories where we see strong growth opportunities
across markets and at the same time adds a new category to our French business, which is currently based on
our Lorina brand (lemonade). The acquisition is the next step in developing the French business towards a multi-
niche market.
MC Energy was acquired from three French entrepreneurs at an enterprise value of around DKK 610 million
(EUR 82 million) on a debt free basis. The acquisition was financed with existing credit facilities. MC Energy has
around 25 employees.
Royal Unibrew A/S has incurred transaction costs relating to the acquisitions of approx. DKK 2 million for finan-
cial and legal advisors in connection with the realization of the transaction. The costs are recognized as admin-
istrative expenses in 2021.
The acquisition has been included in the Consolidated Financial Statements of Royal Unibrew as of the date of
acquisition, and MC Energy was merged into Etablissement Geyer-Fréres in 2021.
Royal Unibrew has made the following calculation of the fair value of the acquired net assets and of goodwill at
the time of the acquisition.
mDKK
Trademarks 392
Property, plant and equipment 3
Inventories 6
Receivables 19
Prepayments 0
Deferred tax -98
Trade payables -13
Other payables -7
Acquired net assets 302
Goodwill 290
Estimated fair value of the business 592
Acquired cash at bank and in hand 17
Cash consideration 609
Number of employees 25
The receivables acquired include trade receivables of a fair value of DKK 19,3 million corresponding to the gross
amount receivable according to contract.
Notes to the Interim Report
27ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Note 5 Acquisition and disposal of subsidiaries and activities (continued)
Acquisition of Solera Beverage Group
On 1 July 2021, Royal Unibrew's Norwegian subsidiary, Royal Unibrew Norge AS, entered into an agreement to
acquire 100% of the shares in Solera Beverage Group. The acquisition was completed on 17 September 2021.
Solera Beverage Group is a leading pan-Nordic importer and distributor of a portfolio of strong leading inter-
national wines, beers, CSD's and other beverages. The company is present in Norway, Sweden and Finland,
and therefore adds Norway and Sweden to Royal Unibrew’s geographic footprint as well as it strengthens the
offering in Finland.
Solera Beverage Group was acquired from the private equity fund, CapMan, at an enterprise value of around
DKK 770 million (NOK 1.1 billion) on a debt free basis. The acquisition was financed with existing credit facilities.
Solera Beverage Group has around 150 employees and generates normalized revenue (excluding positive
COVID-19 effects) of around DKK 1.3 billion and an EBITDA of around DKK 70 million.
Royal Unibrew A/S has incurred transaction costs relating to the acquisitions of approx. DKK 14 million for finan-
cial and legal advisors in connection with the realization of the transaction. The costs are recognized as admin-
istrative expenses in 2021.
The acquisition has been included in the Consolidated Financial Statements of Royal Unibrew as of the date of
acquisition.
Royal Unibrew has made the following calculation of the fair value of the acquired net assets and of goodwill at
the time of the acquisition.
mDKK
Trademarks 146
Customer relations 185
Property, plant and equipment 40
Inventories 155
Receivables 255
Prepayments 29
Deferred tax -71
Trade payables -193
Other payables -387
Acquired net assets 159
Goodwill 439
Estimated fair value of the business 598
Acquired cash at bank and in hand 120
Cash consideration 718
Number of employees 150
The receivables acquired include trade receivables of a fair value of DKK 249,5 million corresponding to the
gross amount receivable according to contract.
Notes to the Interim Report
28ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Financial highlights and ratios
per quarter
Q1
2022
Q1
2021
Q2
2022
Q2
2021
Sales (Million hectolitres) 2,660 2,536 3,840 3,421
Income Statement (mDKK)
Net revenue 2,162 1,605 3,211 2,300
EBITDA 317 318 623 609
EBITDA margin (%) 14.7 19.8 19.4 26.5
Earnings before interest and tax (EBIT) 209 229 511 521
EBIT margin (%) 9.7 14.3 15.9 22.7
Result after tax from investments -4 1 355 14
Other financials, net -10 -7 -15 -9
Profit before tax 195 223 851 526
Net profit for the period 154 177 772 417
Balance Sheet (mDKK)
Non-current assets 8,780 7,031 11.143 7,123
Total assets 11,335 8,618 14.651 9,101
Equity 3,442 3,320 4.574 2,889
Net interest-bearing debt 4,012 2,448 4.416 2,618
Net working capital -566 -682 -1.080 -990
Invested capital 8,064 6,172 9.815 5,908
Cash Flows (mDKK)
From operating activities -283 -15 845 900
From investing activities -57 -69 -147 -97
Payment of lease liabilities -19 -18 -29 -18
Free cash flow* -359 -102 669 785
Q1
2022
Q1
2021
Q2
2022
Q2
2021
Financial ratios (%)
Free cash flow as a percentage of net revenue -17 -6 21 34
Cash conversion -233 -58 87 188
Net interest-bearing debt/EBITDA* 2.0 1.3 2.2 1.3
Equity ratio 30 39 31 32
* Running 12-months
Ratios comprised by the “Recommendations and Financial Ratios” issued by the Danish Society's Commitee for
accounting standards have been calculated according to the recommendations.
29ROYAL UNIBREW Interim report for 1 January - 30 June 2022
Financial highlights and ratios
for 1 January - 30 June 2018-2022
2022
2021
2020
2019
2018
Sales (thousand hectolitres) 6,500 5,957 5,269 5,462 5,226
Income Statement (mDKK)
Net revenue 5,373 3,905 3,457 3,971 3,518
EBITDA 940 927 833 879 800
EBITDA margin (%) 17.5 23.7 24.1 23.2 22.7
Earnings before interest and tax (EBIT) 720 750 663 710 641
EBIT margin (%) 13.4 19.2 19.2 18.7 18.2
Income after tax from
investments in associates 351 15 4 9 9
Other financials, net -25 -16 -19 -19 -14
Profit before tax 1,046 749 648 700 636
Net profit for the period 926 594 505 541 502
Balance Sheet (mDKK)
Non-current assets 11,143 7,123 6, 974 7,099 5,920
Total assets 14,651 9,101 8,837 8,907 7,445
Equity 4,574 2,889 3,545 2,663 2,554
Net interest-bearing debt 4,416 2,618 2,114 3,000 1,956
Net working capital -1,080 -990 -650 -749 -928
Invested capital 9,815 5,908 6,076 6,068 4,814
Cash Flows (mDKK)
From operating activities 562 885 702 715 700
From investing activities -252 -202 -112 -102 -95
Free cash flow 310 683 590 613 605
2022
2021
2020
2019
2018
Share Ratios (DKK per share of DKK 2)
Earnings per share (EPS) 19.2 12.3 10.1 10.9 9.9
Free cash flow per share 6.2 14.2 12.0 12.3 11.9
Year-end price per share 628.4 798.8 551.8 479.0 508.5
Financial ratios (%)
Free cash flow as a percentage
of net revenue 6 17 17 16 17
Cash conversion 33 115 117 113 121
Net interest-bearing debt/EBITDA* 2.2 1.3 1.2 1.7 1.3
Equity ratio 31 32 40 30 34
* Running 12-months
Ratios comprised by the “Recommendations and Financial Ratios” issued by the Danish Society's Commitee for
accounting standards have been calculated according to the recommendations.
30ROYAL UNIBREW Interim report for 1 January - 30 June 2022