XCSE:RBREW ESEF Annual Report
ROYAL UNIBREW A/S (XCSE:RBREW)
ESEF Annual Report
2024-08-28
For: 2024-06-30
View Original
Added on
September 22, 2026
Company Announcement No 15/2024 – August 22, 2024
Interim Report for H1 2024
Key highlights from H1 2024:
• Top-line development as expected with strong momentum
and continued market share gains. Organic volume growth of
3% and organic net revenue growth of 6%.
•
The profitability per hectoliter has been re-established
across markets after years of inflation and FX volatility.
• The organic EBIT growth of 16% was driven by efficiencies,
resulting in an EBIT margin of 11.7%.
• Integration processes in Norway, the Netherlands and San
Giorgio, Italy, according to plan.
• The previous capacity constraints have been significantly
reduced, as production capacities at Vrumona and San Gorgio
are utilized with benefits for Group efficiency.
• Financial flexibility is re-established with NIBD/EBITDA at 2.4x
end of Q2. The Board of Directors has therefore decided to use
the previously communicated mandate to pay out an extraor-
dinary dividend of DKK 14.50 per share on October 3, 2024.
• Full-year organic EBIT growth outlook is updated to 14-19%
(previously: 9-19%).
CEO Lars Jensen comments: "I am very pleased that we
managed to create positive organic growth in volumes, net
revenue, and especially EBIT in the second quarter of 2024.
Continued strong commercial execution and great innova-
tions mean that we have really good momentum in our most
important brands across all our markets.
The organization is doing a good job to secure higher prof-
itability in our business, despite poor weather, and the
second quarter is a proof that we are on the right track. It is
therefore also based on a solid first half that we specify our
expectations for organic EBIT growth for 2024, where we
now expect 14-19% organic EBIT growth compared to the
previous 9-19% organic EBIT growth.
The integrations in Norway, the Netherlands, and Italy are
proceeding as planned. We have ramped up production in
Vrumona and San Giorgio during the first half of the year, and
this has increased the service to our customers and contrib
-
uted with efficiency improvements through a more optimal
use of the production capacity.
Finally, our decarbonization journey continues with an
organic reduction of CO
2
by a full 35% in the first half of 2024
compared to last year,"
concludes Lars Jensen.
Selected financial highlights and key ratios
mDKK
Q2
2024
Q2
2023
H1
2024
H1
2023
FY
2023
Volume
(million hectoliters) 4.8 3.9 8.4 6.6 14.1
Organic volume growth (%)
1 -4 3 -3 -3
Net revenue 4,180 3,595 7,379 6,147 12,927
Organic net revenue
growth (%) 4 5 6 6 4
EBITDA 821 674 1,197 976 2,208
EBITDA margin (%) 19.6 18.7 16.2 15.9 17.1
EBIT 656 536 866 710 1,638
Organic EBIT growth (%) 17 3 16 0 7
EBIT margin (%) 15.7 14.9 11.7 11.6 12.7
Profit before tax 578 480 704 603 1,406
Net profit for the period 458 388 559 486 1,095
Free cash flow 1,041 949 560 545 1,143
Net interest-bearing debt 5,848 4,783 6,426
ROIC incl. goodwill (%)* 12 12 11
ROIC excl. goodwill (%)* 19 19 18
NIBD/EBITDA (times)* 2.4 2.4 2.9
Equity ratio (%) 34 32 32
Earnings per share (EPS) 9.2 7.8 11.2 9.8 21.9
* Running 12 months
EBIT growth of 22% in H1 2024 driven by International and Western Europe
H1
2022
H1
2021
H1
2020
H1
2023
H1
2024
300
400
500
600
700
800
900
Financial highlights for H1 2024
Volumes increased organically by 3% to 8.4 million hectoliters
in H1 2024. The organic volume growth was driven by soft
comparable numbers for the Italian On-Trade beer busi-
ness in the first quarter of the year and a normalization of
the International segment that was negatively impacted by
unrest in Africa in Q1 2023.
Net revenue for H1 2024 amounted to DKK 7,379 million,
compared to DKK 6,147 million in H1 2023, corresponding to
an organic growth of 6%.
The positive organic price/mix development of 3 percentage
points in H1 2024 was driven by strong product and channel
mix in Italy, price increases in Norway and Sweden to mitigate
the effect of weak currencies in 2023, and price increases in
the beginning of the year in most other countries.
In H1 2024, EBITDA rose by DKK 221 million to DKK 1,197
million, leading to an EBITDA margin of 16.2%, which was 0.3%
higher than the year before.
In H1 2024, EBIT was DKK 156 million higher than in H1
2023, totaling DKK 866 million (H1 2023: DKK 710 million).
This represents an organic growth of 16%. The reported EBIT
margin expanded by 0.1 percentage points to 11.7%, which
was negatively impacted by acquisitions. The organic EBIT
margin expanded by 1.0 percentage point.
Financial highlights for Q2 2024
In Q2 2024, organic volume growth of 1% was negatively
impacted by poor weather in June. The International segment
experienced strong organic growth of 27%, and in Western
The free cash flow for H1 2024 amounted to DKK 560 million,
compared to DKK 545 million for H1 2023, driven by higher
earnings which more than offset the increase in capital
expenditures to support building capacity, enhancing effi-
ciency and reducing CO
2
usage.
In H1 2024, net interest-bearing debt decreased by DKK
578 million (H1 2023: increase of DKK 323 million) when
compared to year-end 2023. This reduction is attributed
to the positive free cash flow and the postponement of the
dividend payment. The Board of Directors was authorized at
the Annual General meeting to potentially distribute dividend
of a maximum of DKK 14.5 per share to the shareholders. The
financial strength has improved as planned, and the Board
of Directors has decided to declare a dividend payment of
DKK 726 million (DKK 14.5 per share). The ex-dividend date
is October 1, 2024, and the pay-out date will be October 3,
2024.
Calculated on a 12-month basis, the NIBD/EBITDA ratio was
2.4 at the end of H1 2024, consistent with H1 2023.
ESG highlights
In H1 2024, we achieved a 9% reduction in absolute carbon
emissions (market-based – scope 1 and 2), despite the acqui-
sitions of Vrumona and San Giorgio and thereby equal to a
35% organic decrease. This significant reduction is partly due
to the transition from oil to natural gas at certain facilities and
is also a result of our Lahti site operating on 100% renew-
able energy. Additionally, the installation of an additional heat
recovery system in Faxe has led to a decrease in natural gas
consumption, which is projected to result in a 30% reduction
in energy usage at the Faxe site upon full implementation.
EBIT
EBIT H1
(mDKK)
Europe, 4% organic volume growth was in the context of a
normalized Italian in-market inventory level.
Net revenue in Q2 2024 increased by 16% to DKK 4,180
million, up from DKK 3,595 million in Q2 2023. This corre-
sponds to an organic growth of 4% driven by a strong organic
price/mix in Western Europe, bolstered by a positive product
mix.
EBITDA increased by DKK 147 million to DKK 821 million in Q2
2024, resulting in an EBITDA margin of 19.6%, which was 0.9
percentage points higher than the previous year.
EBIT for Q2 2024 increased by DKK 120 million, from DKK
536 million in Q2 2023 to DKK 656 million in Q2 2024. The
reported EBIT margin expanded by 0.8 percentage points to
15.7%. However, acquisitions diluted the margin by approx-
imately 1.1 percentage points, resulting in an organic EBIT
margin expansion of 1.9 percentage points for the quarter.
Profitability was adversely affected by poor weather condi-
tions in June.
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 2
Measured in GWh per hectoliter, our energy efficiency
produced improved by 7% in H1 2024. We expect further
improvements from a heat recovery system in Lithuania and
other efficiency projects that will be implemented later this
year.
In May 2024, the Science Based Targets initiative (SBTi)
approved our long-term net-zero target for 2040, our
near-term FLAG (Forest, Land, and Agriculture) goal, and our
commitment to eliminate deforestation. These pledges are in
addition to our existing near-term targets for scope 1, 2, and
3, set in August 2023, which include a 50% reduction in abso-
lute emissions for scope 3 compared to 2019, and a 100%
reduction for scope 1 and 2 by 2025. Our KPIs, roadmaps, and
activities are aligned with the latest climate science and the
Paris Agreement’s goal to limit global warming to 1.5°C above
pre-industrial levels.
Acquisitions
The acquisitions of Vrumona and San Giorgio were finalized in
2023, thus contributing inorganically to the reported figures
for Q2 and H1 of 2024. In H1 2024, the total inorganic contri-
bution was approximately 1.6 million hectoliters, net revenue
of DKK 844 million, and EBIT of DKK 45 million. In Q2 2024,
the total inorganic contribution amounted to nearly 0.9 million
hectoliters, with net revenue of DKK 446 million and EBIT of
DKK 30 million.
The integration of both acquisitions is progressing as planned.
In early April, a mere six months after acquiring Vrumona,
we seamlessly integrated all IT infrastructure and systems
from Heineken/Vrumona into Royal Unibrew. The remaining
carve-out activities are expected to be finalized later this year.
The agreement with PepsiCo to assume production, sales,
and distribution of their beverage portfolio in Belgium and
Luxembourg is now anticipated to commence in the fall of
2024.
In San Giorgio, we are upgrading parts of the plant and equip-
ment to enable the facility to increase production for other
Royal Unibrew entities in the upcoming quarters.
Updated full-year outlook
We increase our net revenue guidance to at least DKK 15
billion (previously: around DKK 15 billion), including one quarter
of net revenue from Belgium and Luxembourg. This is based
on a flat underlying volume development and a positive price/
mix leading to a low-to-mid-single digit percentage organic
net revenue growth.
After a solid performance up until mid-August, we narrow our
organic EBIT growth range to 14-19% (previously: 9-19%). This
is equivalent to a reported EBIT of DKK 1,950-2,025 million,
including acquisitions.
Acquisitions are expected to contribute to EBIT by at least
DKK 80 million (previously: around DKK 80 million) in 2024.
The current year is progressing according to plan, and
following several years with extraordinary external impacts
on the business, 2024 is on track to become a normal year
without de-stocking, extraordinary weather, etc.
Financial assumptions
• Net financial expenses, excluding currency related losses
or gains, of maximum DKK 300 million (previously: around
DKK 350 million)
• Corporate income tax rate of around 21%
• Capex in the range of DKK 850-1,000 million
Full-year outlook (2024)
mDKK
Outlook 2024
(August)
Outlook 2024
(April)
Outlook 2024
(February)
Actual 2023
Net revenue At least DKK 15 billion Around DKK 15 billion Around DKK 15 billion 12,927
Organic EBIT growth 14-19% 9-19% 5-15% 7%
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 3
Contents
Profile
Royal Unibrew is a leading regional multi-beverage
company with strong local brand portfolios in
our main markets in the Nordic region, the Baltic
countries, Italy, the Netherlands, France and
Canada. In addition, our products are sold in more
than 70 countries in the rest of the world.
We strive to offer our customers a broad portfolio of high-
quality beverages, which accommodates our consumers’
demands across a wide range of categories, including
soft drinks, beer, energy drinks, cider/RTD, malt beverages,
juice, water, wine and spirits.
Our business is based on a solid foundation of strong
local brands. In our largest markets, Denmark, Finland, the
Baltic countries, Italy, the Netherlands and Norway, our
local brands are accompanied by well-known international
brands on license (such as PepsiCo and Heineken) and
trading brands (such as Diageo). In some of our smaller
markets, like Canada and Sweden, our offering consists of
a mix of our own brands and agency brands.
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
ESG highlights and ratios 6
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. Adoption of new and revised IFRSs 22
3. Risk Management 22
4. Assets and derivative financial
instruments measured at fair value 22
5. Segment reporting 23
6. Cash flow statement 24
7. Acquisition of subsidiaries 24
Quarterly financial highlights
and ratios 28
Financial highlights and ratios for the
Period January 1 - June 30, 2020-2024 29
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 4
Q2
2024
Q2
2023
H1
2024
H1
2023
FY
2023
Sales volume (million hectoliters) 4.8 3.9 8.4 6.6 14.1
Organic volume growth (%) 1 -4 3 -3 -3
Income statement (mDKK)
Net revenue 4,180 3,595 7,379 6,147 12,927
Organic net revenue growth (%) 4 5 6 6 4
EBITDA 821 674 1,197 976 2,208
EBITDA margin (%) 19.6 18.7 16.2 15.9 17.1
EBIT 656 536 866 710 1,638
Organic EBIT growth (%) 17 3 16 0 7
EBIT margin (%) 15.7 14.9 11.7 11.6 12.7
Result after tax from investments in associates -2 4 -5 4 18
Other financial income and expenses, net -77 -60 -158 -111 -250
Profit before tax 578 480 704 603 1,406
Net profit for the period 458 388 559 486 1,095
Balance sheet (mDKK)
Non-current assets 14,306 11,308 14,254
Total assets 18,627 14,957 17,778
Equity 6,314 4,825 5,748
Net interest-bearing debt 5,848 4,783 6,426
Net working capital -837 -711 -754
Invested capital 13,352 10,410 13,342
Cash flows (mDKK)
Operating activities 1,311 1,133 980 852 1,777
Investing activities -270 -184 -420 -307 -634
Free cash flow 1,041 949 560 545 1,143
Q2
2024
Q2
2023
H1
2024
H1
2023
FY
2023
Share ratios (DKK per share of DKK 2)
Number of shares (millions) 50.2 50.2 50.2 50.2 50.2
Earnings per share (EPS) 9.2 7.8 11.2 9.8 21.9
Diluted earnings per share 9.2 7.8 11.2 9.8 21.9
Free cash flow per share 20.8 19.2 11.2 11.0 23.0
Dividend per share* 0.0
Period-end price per share 552.0 610.0 451.1
Financial ratios (%)
Free cash flow as a percentage of net revenue 25 26 8 9 9
Cash conversion 227 245 100 112 104
Return on invested capital incl. goodwill (ROIC)** 12 12 11
Return on invested capital excl. goodwill (ROIC)** 19 19 18
Capex as a percentage of net revenue 6 5 5
Net interest-bearing debt/EBITDA(times)* 2.4 2.4 2.9
Return on equity (ROE) 9 9 20
Equity ratio 34 32 32
* The Board of Directors has decided to distribute an extraordinary dividend of DKK 14.5 per share on October 1, 2024.
** Measured on a rolling running 12-months basis.
Ratios comprised by the "Recommendations and Financial Ratios" issued by the Chartered Financial
Analyst Society Denmark's Committee for Accounting standards have been calculated according to
the recommendations.
Financial highlights and ratios
5ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
ESG highlights and ratios
Q2
2024
Q2
2023
H1
2024
H1
2023
FY
2023
PRODUCTION FIGURES
Production sites 19 19 19 19
19
Production volume, total million hl 4.6 3.4 8.3 6.2
13.0
CO
2
EMISSIONS
Scope 1 & 2 (location based)* million kgCO
2
11.2 9.7 23.3 20.5
39.6
Scope 1 & 2 (market based)** million kgCO
2
7.6 8.2 16.2 17.7
30.2
ENVIRONMENT & CLIMATE
Electricity GWh 35.8 24.6 67.8 49.0
109.9
Natural gas GWh 35.2 20.5 66.2 38.1
93.0
Purchased heat/steam/cooling GWh 7.6 7.3 18.9 17.6
32.2
Other GWh 1.2 9.9 8.3 24.8
26.9
Energy, total GWh 79.8 62.3 161.3 129.5
262.0
Water consumption, total million hl 14.9 10.2 27.0 18.7
39.4
Wastewater, total million hl 11.1 6.3 20.0 11.8
25.7
Hazardous waste million kg 0.0 0.0 0.1 0.0
0.1
Landfilled waste million kg 0.2 0.2 0.4 0.3
0.5
Incinerated waste million kg 0.3 0.2 0.6 0.4
0.8
Recycled waste million kg 4.2 2.8 8.9 6.1
15.1
Solid waste, total million kg 4.7 3.2 9.9 6.8
16.5
Recycled waste % % 88.7 89.1 89.5 90.5
91.5
Spent grain & yeast million kg 27.8 18.5 46.3 37.8
83.3
RELATIVE PRODUCTION FIGURES
Energy kWh/hl 17.3 18.4 19.4 20.8
20.2
CO
2
kg CO
2
/hl 1.6 2.9 2.0 3.3
3.0
Water hl/hl 3.2 3.0 3.3 3.0
3.0
Waste kg/hl 1.0 0.9 1.2 1.1
1.3
Q2
2024
Q2
2023
H1
2024
H1
2023
FY
2023
PACKAGING MATERIAL***
Cans % 49.4 48.3 41.6
Returnable glass bottles % 1.9 2.2 3.9
Non returnable glass bottles % 8.8 7.7 7.3
PET % 29.8 33.0 37.6
Kegs % 2.6 3.0 3.6
Bulk % 1.3 1.4 0.8
Other % 6.2 4.4 5.3
PEOPLE WELL-BEING & DEVELOPMENT
Occupational Health & Safety
Total number of lost-time incidents (LTIs)
Number 24 25 51 42 85
Lost time incident frequency
per million working hrs 13.3 16.1 14.4 13.4 13.0
Number of lost days
Number 215 148 876 311 786
Lost day rate
per million working day 119 95 248 99 120
Fatalities
Number 0 0 0 0 0
Employee engagement
Employee turnover % 4.0 4.5 7.9 8.4
17.7
Leave of absence due to illness
(not work related) % 0.7 0.6 1.5 1.5
3.0
Diversity
Employees by gender, total
Female % 27 27
27
Male % 73 73
73
Employees by gender, Int. Management teams
Female % 34 28
32
Male % 66 72
68
* Location based: Calculated CO
2
emission based on IEA country factors and DEFRA data
** Market based: Subtracting CO
2
emission covered by green certificates
*** Packaging material excluding Amsterdam Brewery Co. Ltd and Solera Norge AS
6
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
2,000
3,000
4,000
5,000
6,000
7,000
8,000
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Q4
2023
Q1
2024
Q2
2024
H1
2020
H1
2023
H1
2024
H1
2022
H1
2021
0
200
400
600
800
1,000
1,200
0
5
10
15
20
25
30
4,000
6,000
8,000
10,000
12,000
14,000
16,000
11.0
11.5
12.0
12.5
13.0
13.5
14.0
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Q4
2023
Q1
2024
Q2
2024
Management’s review
Business development
Soft drinks have continued the strong progress in the first
half of 2024, driven especially by Denmark and the Baltics,
based on a strong market, innovation, commercial execution
and growth within the no/low sugar segment. Beer growth
has been high due to the normalization of sales to the Inter-
national segment, which was affected by unrest in Africa last
year. The energy drink segment continues its above-average
growth, with the half-year performance being driven by
growth in all markets.
Up to and including May, we experienced very strong
momentum in the business across all markets, but adverse
weather in June had negative impact on volumes and mix.
In Northern Europe, the On-Trade channel was negatively
impacted by the weather in June. However, adjusting for
weather, we consider the momentum in the business main-
tained.
In Italy, sales in and sales out have been balanced for more
than 12 months, meaning that there is full comparison from
now on. The results in Italy are solid and satisfactory, and we
continue to gain market shares in all categories.
The development in the International segment was strong
in Q2 2024 and with no capacity constraints. Strong execu-
tion and a more normalized cost base ensured high volume
growth, significant earnings improvement, and more than a
doubling of profitability.
For the first half of 2024, we have not observed any signif-
icant changes in consumer behavior, aside from the effects
of the poor weather in June. The unfavorable weather in
June influenced the channel mix negatively, as people were
less inclined to go out, and consumption was less due to the
weather.
In the first half of 2024, we have improved the profitability of
our total business. With a strong focus on commercial execu-
tion, strong innovations and efficiency improvements, we
expect continued growth in earnings and an organic improve-
ment in profitability in the coming years.
With a solid earnings performance in the half-year, we have
seen a turnaround in profitability. Coupled with strong cash
conversion, we have achieved a free cash flow of more than
DKK 1 billion. This has resulted in a noticeable reduction in our
net interest-bearing debt compared to the beginning of the
year, re-establishing financial and strategic flexibility. The net
interest-bearing debt to EBITDA ratio is now 2.4x, which is
within our target level.
NIBD NIBD/EBITDA (running 12 months)
NIBD and NIBD/EBITDA
(mDKK) (times)
EBITDA EBITDA margin
EBITDA and EBITDA MARGIN
(mDKK) (%)
Net revenue EBIT margin
Revenue and EBIT margin running 12 months
(mDKK) (%)
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 7
ESG development
Our journey to become carbon emission-free (scope 1 and 2)
by 2025 continues with determination. By the end of 2023,
92% of our roadmap for scope 1 and 2 reductions were either
implemented or planned. We continue to invest in efficiency,
decarbonization technology, and the transition to renewable
energy sources. We are intensifying our initiatives across the
entire value chain (scope 1, 2 and 3), from optimizing raw
material processes and engaging in regenerative agriculture
to converting packaging materials to bio-based solutions and
enhancing recycled content. In distribution, we are localizing
production, testing electric and biogas-fueled trucks, and
exploring more eco-efficient transportation modes like rail.
All production sites are focused on energy and water effi-
ciencies. The majority are implementing heat recovery from
various processes such as brewing, cooling, CIP, and from
compressors, which is a precursor to the efficient deployment
of heat pumps at a later stage. Preliminary estimates suggest
that heat pumps could reduce natural gas consumption by
10-50% depending on the site configuration.
Other projects include optimizing our blow molders for PET,
where both bottle design changes and new molds enable
blow molding at significant lower pressure. This alone has the
potential to save 4% of the annual electricity consumption in
Faxe, as well as avoiding investments in new compressors.
Additional projects related to compressed air involve simple
fixes like leak repairs to reduce consumption, and others
involve investing in or refurbishing heating, ventilation and air
condition systems, which have the potential to save 10-12%
on heating at one site. Ongoing projects on CIP optimizations,
pasteurizers, and semi-dry/dry conveyor belts are driving
both water and energy improvements.
We are currently installing several filling lines for cans and PET
bottles that will enable the elimination of plastics, replacing
them with paper or cardboard-based solutions.
Moreover, on the distribution side we have initiated the
replacement of trucks in our own fleet with electric vehicles
(EVs). We are also testing concepts with our providers in
Denmark, where one lane is now converted to 100% EV. We
are working with more providers to expand these concepts.
In Norway, we have already shifted 80% of our empty can
transport from road to rail, resulting in a significant CO
2
reduction.
The no/low sugar and alcohol segment of our portfolio
continues to develop positively. We launched new prod-
ucts within no/low, such as Lemonsoda Twist in Italy, Faxe
Kondi Booster Pink Dragon and Frosty Blue energy drinks in
Denmark, and Mangali Energy water with natural caffeine
in Latvia during the first half of the year. In the alcohol-free
segment, our Royal Pilsner 0.0 was named the best non-al-
coholic beer in Denmark in 2024, amongst 42 beers from 21
breweries.
Gender diversity at our Board of Directors (BoD) and manage-
ment levels is improving, and we are on the right path to
achieving our goal of at least 40% of the underrepresented
gender by 2025. At the Annual General Meeting (AGM) in April
2024, Lise Mortensen was appointed as a member of the BoD,
chairing the Audit Committee, replacing Christian Sagild. This
appointment means that the BoD now has a 50:50 gender
representation among the AGM elected members. At the
International Management Teams level, we have also tipped
the gender distribution to 34% through new recruitments,
surpassing our short-term goal of at least 30% by 2027.
Launch of long-term incentive plan for
executive management and key employees
In May 2024, Royal Unibrew launched a new share based
long-term incentive plan (LTIP) for selected key employees
for 2024.
The LTIP implies the grant of a number of performance share
units (PSU) to each key employee and are granted in 2024 for
vesting in 2027 depending on the company’s performance in
2024 to 2026.
The KPIs used for executive management in the program are
(a) organic EBIT development from 2024 to 2026; (b) accu-
mulated free cash flow for the years 2024 to 2026; (c) CSR
rating at the end of 2026 relative to a beverage peer group
and (d) share price development to the end of 2026.
Please find more information in company announcement no
14/2024, May 13, 2024.
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 8
Financial review
Income statement
Q2
2024
Q2
2023
%
change
H1
2024
H1
2023
%
change
FY
2023
Volumes, beverages (mHL) 4.8 3.9 23 8.4 6.6 27 14.1
Net revenue (mDKK) 4,180 3,595 16 7,379 6,147 20 12,927
Gross profit (mDKK) 1,886 1,564 21 3,128 2,595 21 5,394
Group volumes increased by 23% in Q2 2024 to 4.8 million hectoliters, leading to an overall
volume growth of 27% for the first half of the year, reaching 8.4 million hectoliters. This increase
is driven by strong organic growth and the acquisitions of Vrumona and San Giorgio.
Net revenue in the second quarter increased by 16% to DKK 4,180 million, which resulted in a net
revenue of DKK 7,379 million for the first half of the year.
Gross profit for the first half of 2024 was DKK 533 million higher than the same period in 2023,
amounting to DKK 3,128 million, which represents an increase of 21%. The gross profit margin
was marginally higher by 0.2 percentage points compared to H1 2023 (Q2 2024: 1.6 percentage
points higher year-over-year), representing 42.4% versus 42.2% for H1 2023. Gross profit per
volume unit declined by 5% (Q2 2024: 3% lower) compared to 2023. This decrease in gross
profit per volume unit is attributable to the inventory revaluation conducted in Q1 2024 and the
dilutive effect at the gross profit per volume unit level due to the acquisitions of Vrumona and
San Giorgio. Adjusted for acquisitions, the gross profit per volume unit experienced an increase
in both Q2 2024 and H1 2024.
mDKK
Q2
2024
Q2
2023
%
change
H1
2024
H1
2023
%
change
FY
2023
Sales and distribution expenses 1,003 847 18 1,819 1,555 17 3,158
Administrative expenses 227 181 25 443 330 34 628
Sales and distribution expenses increased by DKK 264 million in H1 2024 to DKK 1,819 million,
representing a 17% increase. In Q2 2024, the increase was 18%, amounting to DKK 1,003 million..
Administrative expenses in H1 2024 rose by 34% to DKK 443 million, and as a percentage of net
revenue, administrative expenses increased by 0.6 percentage points compared to H1 2023.
This increase is attributed to the acquisition of Vrumona and higher IT costs due to ongoing
integrations.
mDKK
Q2
2024
Q2
2023
%
change
H1
2024
H1
2023
%
change
FY
2023
EBITDA 821 674 22 1,197 976 23 2,208
EBIT 656 536 22 866 710 22 1,638
Result after tax from
investments -2 4 n.m. -5 4 n.m. 18
Net financial expenses -77 -60 28 -158 -111 42 -250
In H1 2024, Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by
DKK 221 million, totaling DKK 1,197 million, compared to DKK 976 million in H1 2023. The EBITDA
increase for Q2 2024 was DKK 147 million over the same period in 2023. The EBITDA margin
increased to 19.6% in Q2 2024 (Q2 2023: 18.7%).
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 9
EBIT for H1 2024 amounted to DKK 866 million, which is DKK 156 million higher than the same
period in 2023, resulting in an EBIT margin expansion of 0.1 percentage points to 11.7%. In
Q2 2024, EBIT increased by DKK 120 million, resulting in an EBIT margin expansion of 0.8
percentage points to 15.7%. Adjusting for acquisition effects, the organic EBIT margin increased
by 1.0 percentage point to 12.6% in H1 2024 and by 1.9 percentage points to 16.8% in Q2 2024.
Q2
2024
Q2
2023
%
change
H1
2024
H1
2023
%
change
FY
2023
Profit before tax (mDKK) 578 480 20 704 603 17 1,406
Tax on profit (mDKK) -120 -92 30 -145 -117 24 -311
Net profit (mDKK) 458 388 18 559 486 15 1,095
Earnings per share (DKK) 9.2 7.8 17 11.2 9.8 14 21.9
Profit before tax for H1 2024 amounted to DKK 704 million, which was DKK 101 million more
than in H1 2023, corresponding to an increase of 17%. In Q2 2024, the growth in profit before
tax was 20%, as it rose by DKK 98 million to DKK 578 million.
Tax on profit for H1 2024 was DKK 145 million, corresponding to a tax rate of 20.5% on the profit
before tax, excluding the result after tax from investments in associates. This means that the net
profit for H1 2024 amounted to DKK 559 million, which is DKK 73 million higher than in H1 2023,
corresponding to an increase of 15%. Earnings per share in H1 2024 increased to DKK 11.2 per
share, compared to DKK 9.8 for the same period in 2023.
Balance sheet
The balance sheet amounted to DKK 18,627 million at the end of H1 2024, which is DKK 849
million above the year-end 2023.
mDKK
H1
2024
H1
2023
%
change
FY
2023
Invested capital 13,352 10,410 28 13,342
Invested capital increased by DKK 10 million in the period from December 31, 2023, to June 30,
2024. ROIC, both excluding and including goodwill, calculated on a running 12-month basis, was
unchanged compared to a year ago, but 1 percentage point higher than at the 2023 year-end,
at 12% and 19% respectively
%
H1
2024
H1
2023
Change
%
points
FY
2023
ROIC incl. goodwill (running 12-months) 12 12 0 11
ROIC excl. goodwill (running 12-months) 19 19 0 18
Equity at the end of June 2024 amounted to DKK 6,314 million, compared to DKK 5,748 million
at the end of 2023. The change in H1 2024 equity mainly consists of a positive net profit for
the period of DKK 559 million (H1 2023: DKK 486 million). There was no dividend payment in H1
2024 (H1 2023: DKK 720 million), as it was delayed with shareholder approval, but the Board
of Directors has approved that an extraordinary dividend of DKK 14.5 per share will be paid on
October 1, 2024, in accordance with the mandate given at the AGM.
The equity ratio increased by 2 percentage points from December 31, 2023, to 34% on June 30,
2024.
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 10
mDKK
H1
2024
H1
2023
%
change
FY
2023
Net interest-bearing debt (NIBD) 5,848 4,783 22 6,426
Net interest-bearing debt at the end of H1 2024 showed a DKK 578 million decline (H1 2023:
increase of DKK 323 million) and amounted to DKK 5,848 million, compared to DKK 6,426 million
at the end of 2023. The decrease in net interest-bearing debt was mainly driven by a positive
free cash flow of DKK 560 million net. No dividend was paid in H1 2024 as it was delayed with
shareholder approval, but the Board of Directors has approved that an extraordinary dividend of
DKK 14.5 per share will be paid on October 1, 2024, in accordance with the mandate given at the
AGM. The net interest-bearing debt to EBITDA ratio (on a running 12-month basis) remained at
2.4x (H1 2023: 2.4x).
Net working capital was DKK -837 million at the end of June 2024 (June 30, 2023: DKK -711
million), compared to DKK -754 million at the end of 2023, reflecting an increase of DKK
83 million. Change in net working capital including foreign exchange effects amounts to an
increase of DKK 100 million. The movement in net working capital is seasonality driven, conse-
quently reflecting a favorable mix movement in trade payables and -receivables net of DKK 246
million, offset by an increased inventory level of DKK 146 million.
Cash flow statement
The free cash flow for H1 2024 amounted to DKK 560 million, marking an increase of DKK
15 million compared to H1 2023. During H1 2024, the increase in free cash flow comes from
additional favorable net cash flow from operating activities of DKK 128 million offset by a higher
level of investments in property, plant and equipment net, including leasing of DKK 113 million.
Net cash flow from operating activities is driven by a higher level of earnings of DKK 222 million,
offset by increased net financial expenses of DKK 49 million, more corporation tax paid of DKK
39 million as well as a slightly less favorable net working capital position of DKK 6 million.
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 11
Northern Europe
Q2
2024
Q2
2023
%
change
H1
2024
H1
2023
%
change
FY
2023
Volumes (mHL) 3.1 3.1 -1 5.4 5.4 0 10.8
Organic volume growth (%) -1 3 0 3 1
Net revenue (mDKK) 2,878 2,871 0 5,039 4,931 2 10,023
Organic net revenue growth (%) 0 11 2 13 8
EBIT (mDKK) 635 637 0 1,445
Organic EBIT growth (%) 0 19 16
EBIT margin (%) 12.6 12.9 14.4
The Northern Europe segment represents our multi-beverage businesses in Finland, Norway,
Sweden, the Baltic countries, Denmark and Germany. In H1 2024, it accounted for 63% of the
Group's volumes and 68% of the Group's net revenue, compared to 81% of volumes and 80% of
net revenue in H1 2023.
In Q2 2024, volumes in Northern Europe decreased by 1% compared to the same period in
2023, resulting in a flat development for the first six months of 2024. This trend was attributed
to poor weather conditions in June, which is a significant month for the quarter. Volume declines
were observed in Finland, Norway, and Denmark, while the Baltic countries and Sweden experi-
enced volume growth during the quarter.
Net revenue remained flat for the quarter, while net revenue for H1 2024 was 2% higher than H1
2023. Currency fluctuations did not impact net revenue in H1 2024.
EBIT for H1 2024 decreased by DKK 2 million to DKK 635 million. Northern Europe was more
affected by the revaluation of inventories conducted in Q1 2024, as the inventory footprint is
relatively larger in this segment than in the other two segments. The reported EBIT margin for
H1 2024 decreased by 0.3% year-over-year to 12.6% due to the negative value adjustment of
inventories in Q1 2024. Despite the unfavourable weather in June, the EBIT margin in Northern
Europe expanded in Q2 2024.
In Denmark, we have continued our strong commercial execution and have grown our value
market shares in nearly all categories. The strong performance in carbonated soft drinks (CSD)
continues, driven by our robust no/low proposition - a segment that keeps gaining market share
from the regular CSD market. Having been in the market for over a year, Faxe Kondi orange has
solidified its position as the second-largest orange CSD brand in Denmark. Earlier this year, we
expanded the Faxe Kondi brand into the sports beverage segment with the introduction of Faxe
Kondi Pro - an isotonic sports drink, containing electrolytes, carbohydrates and enriched with
vitamins.
The energy drink segment experienced double-digit value growth in H1 2024, and we success-
fully increased our market share. Consequently, Faxe Kondi Booster has become the second-
largest energy drink brand in Denmark based on value. In the same period, the beer market saw
a decline in volume but remained flat in value due to minor price increases. We maintained our
value market share throughout this period.
In Finland, net revenue increased as an increase in sales of ready-to-drink (RTD) more than
offset declining beer sales. Net revenue from CSD and water remained stable in H1 2024.
Consumer confidence in Finland continues to be low and unemployment is on the rise, further
exacerbating the negative impact of the weather.
We continue to capture market shares in the crucial CSD and RTD categories. Our launch of the
Original Long Drink pineapple version last year has propelled our market share gains in the RTD
segment into this year. In March, we introduced a new lemonade version.
Developments in individual market segments
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 12
Net revenue in the Baltic countries saw an increase in the second quarter. This growth was
fueled by a strong performance within our strategic growth area framework. Premium beer
continued its strong trajectory, bolstered by new product launches and price increases, in a beer
category that is otherwise in decline. The no/low sugar CSD segment also showed impressive
development. Additionally, we made strides in the energy drink market, where we launched a
new caffeine-free version of Cult during Q2, further expanding our market share.
In Q2 2024, our business in Norway generated a marked improvement in earnings, with net
revenue climbing due to robust volume growth and a favorable price/mix in the On-Trade. The
integration process in Norway is progressing as planned, with the IT integration anticipated to
be completed within 2024. In Sweden, net revenue outpaced volume growth in Q2 2024 with a
key emphasis on enhancing the overall profitability of the business.
Western Europe
Q2
2024
Q2
2023
%
change
H1
2024
H1
2023
%
change
FY
2023
Volumes (mHL) 1.3 0.4 209 2.4 0.7 228 2.2
Organic volume growth (%) 4 -29 6 -22 -14
Net revenue (mDKK) 889 387 130 1,619 655 147 1,738
Organic net revenue growth (%) 14 -15 18 -14 -4
EBIT (mDKK) 163 65 150 141
Organic EBIT growth (%) 82 -50 -25
EBIT margin (%) 10.1 9.9 8.1
In the first half of 2024, Western Europe, representing our multi-niche businesses in the Neth-
erlands, Italy and France, contributed to 28% of the Group's volumes and 22% of net revenue.
This is a significant increase from the first half of 2023, where it accounted for 11% of both
volumes and net revenue.
In Q2 2024, volumes saw a dramatic increase of 209%, primarily driven by the acquisitions of
Vrumona and San Giorgio. When adjusting for these acquisitions, the organic volume growth
was 4% in Q2 2024. This figure is notably lower than the 8% growth observed in the first
quarter of the year. The slower growth rate can be attributed to the normalization of the Italian
On-Trade channel at the start of Q2 2023.
In the first half of 2024, volumes organically grew by 6%, while the growth was 228%, reaching
2.4 million hectoliters. Net revenue organically increased by 18%, and with the inclusion of acqui-
sition effects, it surged by 147% to DKK 1,619 million.
In H1 2024, the EBIT margin saw a modest increase of 0.2 percentage points year-over-year,
reaching 10.1%. EBIT climbed from DKK 65 million in H1 2023 to DKK 163 million in H1 2024,
marking an organic EBIT growth of 82%. Additionally, the organic EBIT margin experienced a
significant rise, going from 9.9% in H1 2023 to 15.4% in H1 2024.
In Italy, the macroeconomic environment remains robust, characterized by low inflation and
rising consumer confidence. Against this backdrop, our beer and carbonated soft drink (CSD)
businesses have continued to expand throughout the second quarter. This period marks the
first quarter being up against normalized market conditions of the previous year, following a
phase of destocking in the wholesale channel.
In H1 2024, we have seen market share gains across all three categories in Italy - super
premium beer, carbonated soft drinks (CSD), and energy drinks - in Italy. The growth in the CSD
category has been bolstered by the introduction of Lemonsoda Twist. Launched with a dynamic
campaign that started by turning major Italian cities green in February 2024, Lemonsoda Twist
distinguishes itself with a superior lemon/lime flavor. The rollout is set to continue into Q3 2024
with digital platform teasers, social media engagement, and influencer campaigns.
The integration of Vrumona in the Netherlands continues with a high focus on commercial
execution and on the final aspects of the carve-out from Heineken. The process is proceeding
according to plan.
We are currently in the process of taking over the sales and distribution of PepsiCo’s beverage
portfolio in the Belgian Off- and On-Trade channels, which marks the establishment of a
new market for Royal Unibrew in Central Europe. The agreement also includes a small setup
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 13
in Luxembourg and a field service agreement on snacks for Belgium. The transition is now
expected to commence around October 1, 2024.
International
Q2
2024
Q2
2023
%
change
H1
2024
H1
2023
%
change
FY
2023
Volumes (mHL) 0.4 0.3 27 0.7 0.5 35 1.1
Organic volume growth (%) 27 -18 35 -25 -21
Net revenue (mDKK) 414 336 23 721 561 29 1,166
Organic net revenue growth (%) 23 -9 29 -15 -14
EBIT (mDKK) 79 25 218 75
Organic EBIT growth (%) 218 -51 -40
EBIT margin (%) 11.0 4.5 6.4
The International segment encompasses the export and licensing business in markets outside
Northern Europe and Western Europe segments. In the first half of 2024, the International
segment was responsible for 9% of the Group's total volumes and 10% of the Group's net
revenue. This is an increase from the first half of 2023, where it accounted for 8% of the Group's
volumes and 9% of the Group's net revenue.
International operations continued to normalize in Q2 2024, particularly as the performance in
Africa last year was dampened by political unrest in certain markets. Organic volume growth
reached 27% in Q2 2024, while organic net revenue saw a 23% increase for the quarter. The
quarter's negative price/mix was attributed to the product and country mix. For the first half of
the year, organic growth for volumes and net revenue rose by 35% and 29%, respectively.
The African business has stabilized, and we are witnessing robust growth across most markets.
In Canada, Bruce Ashley is delivering a strong performance, and Estrella Damm has been added
to the product lineup. Despite the general downturn in the Canadian beer market, Amsterdam
Brewing is successfully expanding its market share. The malt beverage sector in the Americas is
also thriving with significant growth.
As anticipated, the International division saw a significant boost in profitability during the first
half of 2024, driven by increased sales and reduced transportation costs. In H1 2024, EBIT
increased by DKK 54 million, reaching DKK 79 million (up from DKK 25 million in H1 2023),
marking an organic EBIT growth of 218%. Consequently, the EBIT margin more than doubled,
from 4.5% in H1 2023 to 11.0% in H1 2024.
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 14
Management's statement
Executive Management
Board of Directors
ROYAL UNIBREW Interim Report for January 1 - June 30, 2024 15
For further information on this announcement:
Head of Investor Relations and Communication, Jonas Guldborg Hansen, tel. +45 20 10 12 45
We invite investors and analysts to follow Royal Unibrew’s presentation of the Interim Report
on Wednesday, August 23, 2024, at 9.00 am CEST by webcast:
Telephone conference
Access details for participants:
https://register.vevent.com/register/BIb32ca9b6b6844a788a3c8bf6bbd057e0
Webcast player URL
https://edge.media-server.com/mmc/p/9vasz7yb
Financial calendar for 2024
November 12, 2024 Trading statement for the period January 1 - September 30, 2024
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 January 1 - June 30, 2024 16
Consolidated income statement
mDKK
Q2
2024
Q2
2023
H1
2024
H1
2023
FY
2023
Net revenue 4,180 3,595 7,379 6,147 12,927
Production costs -2,294 -2,031 -4,251 -3,552 -7,533
Gross profit 1,886 1,564 3,128 2,595 5,394
Sales and distribution expenses -1,003 -847 -1,819 -1,555 -3,158
Administrative expenses -227 -181 -443 -330 -628
Other income 0 0 30
EBIT 656 536 866 710 1,638
Result after tax from investments in associates -2 4 -5 4 18
Financial income 7 8 12 24 10
Financial expenses -84 -68 -170 -135 -260
Profit before tax 578 480 704 603 1,406
Tax on the profit for the period -120 -92 -145 -117 -311
Net profit for the period 458 388 559 486 1,095
Profit for the period is attributable to:
Equity holders of Royal Unibrew A/S 458 388 559 486 1,095
Non-controlling interests 0 0 0 0 0
Net profit for the period 458 388 559 486 1,095
Earnings per share (DKK) 9.2 7.8 11.2 9.8 21.9
Diluted earnings per share (DKK) 9.2 7.8 11.2 9.8 21.9
mDKK
Q2
2024
Q2
2023
H1
2024
H1
2023
FY
2023
Net profit for the period 458 388 559 486 1,095
Other comprehensive income
Items that may be reclassified to
the income statement:
Exchange adjustments of foreign group enterprises 41 -31 -40 -112 -29
Value adjustment of hedging instruments 31 -11 40 -2 -28
Tax on value adjustment of hedging instruments -3 6 -5 4 9
Total 69 -36 -5 -110 -48
Items that may not be reclassified to
the income statement:
Actuarial gain on pension schemes 0 0 0 0 0
Total 0 0 0 0 0
Other comprehensive income after tax 69 -36 -5 -110 -48
Total comprehensive income 527 352 554 376 1,047
Comprehensive income for the period is
attributable to:
Equity holders of Royal Unibrew A/S 527 352 554 376 1,047
Non-controlling interests 0 0 0 0 0
Net profit for the period 527 352 554 376 1,047
17ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
Consolidated balance sheet
Assets
mDKK
June 30,
2024
June 30,
2023
December 31,
2023
NON-CURRENT ASSETS
Intangible assets 9,548 7,287 9,469
Property, plant and equipment 4,659 3,852 4,662
Investments in associates 18 96 34
Other non-current investments 81 73 89
Non-current assets 14,306 11,308 14,254
CURRENT ASSETS
Inventories 1,543 1,391 1,401
Receivables 2,520 1,959 1,901
Prepayments 215 175 165
Cash and cash equivalents 43 124 57
Current assets 4,321 3,649 3,524
Assets 18,627 14,957 17,778
Liabilities and Equity
mDKK
June 30,
2024
June 30,
2023
December 31,
2023
EQUITY
Share capital 100 100 100
Other reserves 1,499 1,453 1,519
Retained earnings 4,715 3,272 4,129
Proposed dividend 0 0 0
Equity contributable to equity holders
of Royal Unibrew A/S 6,314 4,825 5,748
Non-controlling interests 0 0 0
Equity 6,314 4,825 5,748
LIABILITIES
Non-current liabilities
Deferred tax 1,288 971 1,281
Mortgage debt 978 1,008 998
Credit institutions 3,407 3,161 4,506
Other payables 1 9 1
Non-current liabilities 5,675 5,149 6,786
Current liabilities
Mortgage debt 30 2 11
Credit institutions 1,476 736 968
Trade payables 2,961 2,284 2,425
Provisions 11 0 11
Corporation tax 17 9 44
Other payables 2,143 1,952 1,785
Current liabilities 6,638 4,983 5,244
Liabilities 12,313 10,132 12,030
Liabilities and equity 18,627 14,957 17,778
18ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
Consolidated cash flow statement
for January 1 - June 30
mDKK Note
Q2
2024
Q2
2023
H1
2024
H1
2023
FY
2023
Net profit for the period 458 388 559 486 1,095
Adjustments for non-cash operating items 6 370 296 651 501 1,127
Change in working capital 608 537 100 106 55
Recieved financial income 6 2 10 13 8
Paid financial expenses -81 -58 -165 -119 -251
Financial expenses related to leasing -3 -2 -5 -4 -7
Corporation tax paid -47 -30 -170 -131 -250
Cash flows from operating activities 1,311 1,133 980 852 1,777
Dividend received from associates 0 0 11 11 13
Sale of property, plant and equipment 2 0 4 1 93
Purchase of property, plant and equipment -232 -158 -352 -267 -602
Acquisition of enterprises and adjustments hereto 21 -1 27 -1 -2,419
Purchase/sale of intangible fixed assets and
fixed asset investments 11 -2 9 5 -10
Cash flows from investing activities -198 -161 -301 -251 -2,925
Proceeds from borrowings 0 171 627 545 2,554
Repayment of borrowings -1,177 -401 -1,236 -457 -947
Repayment on leasing facilities -40 -26 -83 -52 -138
Dividend paid to shareholders -720 -720 -720
Sale of shares for treasury 249
Cash flows from financing activities -1,217 -976 -692 -684 998
mDKK Note
Q2
2024
Q2
2023
H1
2024
H1
2023
FY
2023
Change in cash and cash equivalents -105 -4 -13 -83 -150
Cash and cash equivalents at beginning of period 141 129 57 214 214
Exchange adjustment 7 -1 -2 -7 -7
Cash and cash equivalents end of period 43 124 43 124 57
Free cash flow
Net cash from operating activities 1,311 1,133 980 852 1,777
Net cash used in investing activities -230 -158 -337 -255 -496
Payment of lease liabilities -40 -26 -83 -52 -138
Free cash flow 1,041 949 560 545 1,143
19ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
Consolidated statement of changes in equity
for January 1 - June 30
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 Total
Equity at December 31, 2023 100 1,573 -70 16 1,519 4,129 0 5,748 0 5,748
Changes in equity in 2024
Net profit for the year 0 559 559 559
Correction previous period -5 -10 -15 15 0 0
Other comprehensive income -40 40 0 0 0
Tax on other comprehensive income -5 -5 -5 -5
Total comprehensive income 0 0 -45 25 -20 574 0 554 0 554
Dividends paid to shareholders 0 0 0
Share-based payments 0 12 12 12
Total shareholders 0 0 0 0 0 12 0 12 0 12
Total changes in equity
January 1 - June 30, 2024 0 0 -45 25 -20 586 0 566 0 566
Equity at June 30, 2024 100 1,573 -115 41 1,499 4,715 0 6,314 0 6,314
The share capital at June 30, 2024 amounts to DKK 100,400,000 (2023: DKK 100,400,000 ) and is distributed on shares of DKK 2 each.
20ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
Consolidated statement of changes in equity
for January 1 - June 30
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 Total
Equity at December 31, 2022 100 1,573 -41 35 1,567 2,763 728 5,158 0 5,158
Changes in equity in 2023
Net profit for the year 0 486 486 0 486
Other comprehensive income -112 -2 -114 -114 -114
Tax on other comprehensive income 0 4 4 4
Total comprehensive income 0 0 -112 -2 -114 490 0 376 0 376
Dividends paid to shareholders 0 -720 -720 -720
Dividend on treasury shares 0 8 -8 0 0
Share-based payments 0 11 11 11
Total shareholders 0 0 0 0 0 19 -728 -709 0 -709
Total changes in equity
January 1 - June 30, 2023 0 0 -112 -2 -114 509 -728 -333 0 -333
Equity at June 30, 2023 100 1,573 -153 33 1,453 3,272 0 4,825 0 4,825
21ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
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 2023 provides the full 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.
Note 2 Adoption of new and revised IFRSs
Royal Unibrew has adopted all new or revised and amended International Financial Reporting Stand-
ards (IFRSs) and interpretations (IFRIC) issued by IASB and endorsed by the EU effective for the
financial year 2024. It is assessed that the revisions and amendments have not had a material impact
on the consolidated financial statements.
Note 3 Risk Management
Royal Unibrew’s principal risks and the external factors that may affect Royal Unibrew are provided in
the 2023 Annual Report. These are unchanged for the first half year of 2024.
Note 4 Assets and derivative financial instruments measured at fair value
mDKK
June 30,
2024
June 30,
2023
December 31,
2023
Derivative financial instruments 41 34 -4
Derivative financial instruments are classified as level-2 instruments in the IFRS fair value hierarchy.
The determined 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 January 1 - June 30, 2024
Notes to the Interim report
Note 5 Segment reporting
The Group’s results break down as follows on segments:
H1 2024
mDKK
Northern
Europe
Western
Europe
Inter-
national
Un-
allocated To t a l
Net revenue 5,039 1,619 721 7,379
Amortization and depreciation 237 77 17 0 331
Earnings before interest and tax (EBIT) 636 163 78 -11 866
Sales (million hectoliters) 5.3 2.4 0.7 8.4
H1 2023
mDKK
Northern
Europe
Western
Europe
Inter-
national
Un-
allocated To t a l
Net revenue 4,930 655 563 0 6,147
Amortization and depreciation 228 25 14 0 267
Earnings before interest and tax (EBIT) 637 65 25 -17 710
Sales (million hectoliters) 5.4 0.7 0.5 0 6.6
FY 2023
mDKK
Northern
Europe
Western
Europe
Inter-
national
Un-
allocated To t a l
Net revenue 10,023 1,738 1,166 0 12,927
Amortization and depreciation 454 85 30 1 570
Earnings before interest and tax (EBIT) 1,445 141 75 -23 1,638
Volumes, beverages (Million hectolitres) 10.8 2.2 1.1 14.1
23ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
Note 6 Cash flow statement
mDKK
H1
2024
H1
2023
FY
2023
Adjustments for non-cash operating items
Financial income -12 -24 -10
Financial expenses 170 135 260
Amortisation, depreciation and impairment of intangible assets
and property, plant and equipment 331 267 579
Tax on the profit for the period 145 117 311
Income from investments in associates 5 -4 -18
Profit and loss from sale of property, plant and equipment 0 -1 -9
Share-based payments and remuneration 12 11 14
Total 651 501 1,127
Note 7 Acquisition of subsidiaries
Acquisitions in 2023
Acquisition of full ownership of Vrumona B.V.
On July 3, 2023, Royal Unibrew entered into an agreement to acquire Vrumona B.V. from Heineken. The
acquisition was completed on September 29, 2023. Vrumona is the second largest soft drinks player
in the Dutch market carrying a range of strong own brands and partner brands. The headquarters and
production facility are located near Utrecht. Vrumona B.V. has more than 300 employees.
Vrumona B.V. operates seven production lines at the facility with a current annual output of around
3.1 million hectoliters. The acquisition of Vrumona B.V. establishes a new market platform for Royal
Unibrew in the Netherlands. It is our plan to invest in further production capabilities to grow the
existing business but also utilize spare capacity to support Royal Unibrew’s global production foot print.
Vrumona B.V. has a portfolio of strong local Dutch brands and a strong operational footprint in the
Netherlands. The company offers a broad product portfolio of both own brands and third-party
brands produced under license. Vrumona B.V. has a strong position within the no/low calorie segment,
which has been a focus area for several years.
Notes to the Interim report
24ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
Note 7 Acquisition of subsidiaries (continued)
Notes to the Interim report
At signing, the enterprise value of Vrumona B.V. was EUR 300 million. Vrumona B.V.’s net revenue was
in 2022 EUR 200 million, whereas normalized EBITDA in 2022 was EUR 25 million, resulting in an
acquisition multiple (EV/EBITDA) of 12 times.
The acquisition price exceeded the fair value of the acquired assets, liabilities and contingent liabili-
ties. 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.
The purchase price at closing amounted to EUR 280 million, whereas EUR 255 million was paid in
cash and EUR 25 million of debt taken over, immediately repaid to seller. The final purchase price could
be subject to adjustments.
Royal Unibrew has incurred transaction costs relating to the acquisitions of approximately DKK 6
million for financial and legal advisors in connection with the transaction. The costs are recognized as
administrative expenses in 2023.
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. Compared to the assessment made at the time of acquisition,
the purchase price allocation has been adjusted resulting in an increase of goodwill by DKK 2 million
as net liabilities of DKK 28 million has been included in the opening balance, partly compensated by a
reduction in the purchase price of DKK 26 million.
mDKK
30/6
2024
31/12
2023
Trademarks 651 651
Distribution rights 55 55
Customer relations 54 54
Property, plant and equipment 591 591
Inventories 123 123
Receivables 284 293
Prepayments 1 1
Deferred tax -242 -242
Debt including leasing -21 -21
Trade payables -363 -363
Corporation tax -2 -2
Other payables -192 -173
Acquired net assets 939 967
Goodwill 1,126 1,124
Estimated fair value of the business 2,065 2,091
Net debt taken over 0 0
Cash consideration 2,065 2,091
Number of employees 317 317
The purchase price allocation is considered preliminary.
25ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
Note 7 Acquisition of subsidiaries (continued)
Notes to the Interim report
Acquisition of full ownership of Birrificio San Giorgio S.r.l
On July 20, 2023, Ceres S.p.A., a fully owned subsidiary of Royal Unibrew A/S, entered into an agree-
ment to acquire Birrificio San Giorgio S.r.l from the seller Birra Castello S.p.A. The acquisition was
completed on November 2, 2023. The company, including the production facility, is based in San
Giorgio di Nogaro, Udine, in the northern part of Italy and has approximately 70 employees.
Birrificio San Giorgio S.r.l. has two production lines at the facility with a potential annual output of
around 0.8 million hectoliters. The acquisition establishes additional production capacity in Italy,
which will free up capacity in Royal Unibrew’s largest production facility in Denmark.
The total purchase price amounts to EUR 44 million, consisting of considerations paid of EUR 36.5
million regarding shares transferred and EUR 7.5 million regarding an associated stock transferred.
The acquisition price exceeded the fair value of the acquired assets, liabilities and contingent liabili-
ties. 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 approximately DKK 4
million for financial and legal advisors in connection with the transaction. The costs are recognized as
administrative expenses in 2023.
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, which is unchanged as of 30 June 2024:
mDKK
Property, plant and equipment 98
Inventories 45
Receivables 10
Deferred tax -7
Other payables -8
Acquired net assets 138
Goodwill 190
Estimated fair value of the business 328
Net debt taken over 0
Cash consideration 328
Number of employees 70
The purchase price allocation is considered preliminary.
Acquisition of full ownership of Liquid Studio Holding ApS
On October 1, 2023, Royal Unibrew A/S entered into an agreement to acquire 37.7% of the shares in
Liquid Studio Holding ApS. The total ownership hereafter amounts to 62.7% as Royal Unibrew A/S
already owned 25%.
Liquid Studio Holding ApS is owner of the brand Rebæl, and the strategic rationale of the transaction
has been to fully integrate the activities of Rebæl into Royal Unibrew.
Purchase price for the shares at closing was estimated to DKK 36 million, whereof DKK 18 million
was paid in cash in prior years. In addition to considerations already paid, the remaining part of the
purchase price of DKK 18 million comprise a discounted value of the liability Royal Unibrew A/S has
toward existing minority shareholders as for their option to sell.
No goodwill has been recognized in the transaction.
26ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
Notes to the Interim report
Royal Unibrew A/S has incurred costs of less than DKK 1 million associated with the transaction. The
costs are recognized as administrative expenses in 2023.
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, which is unchanged as of 30 June 2024:
mDKK
Trademarks 50
Property, plant and equipment 1
Inventories 1
Receivables 3
Prepayments 1
Deferred tax -11
Trade payables -2
Other payables -3
Acquired net assets 40
Goodwill 0
Estimated fair value of the business 40
Net debt taken over -4
Cash consideration paid in prior years -18
Deferred payment -18
Cash consideration 0
Number of employees 5
The purchase price allocation is considered preliminary.
Note 7 Acquisition of subsidiaries (continued)
27ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
Financial highlights and ratios
per quarter
Q1
2024
Q1
2023
Q2
2024
Q2
2023
Volume (million hectoliters) 3.7 2.8 4.8 3.9
Income statement (mDKK)
Net revenue 3,199 2,552 4,180 3,595
EBITDA 376 302 821 674
EBITDA margin (%) 11.8 11.8 19.6 18.7
EBIT 210 174 656 536
Organic EBIT growth 13 -7 17 3
EBIT margin (%) 6.6 6.8 15.7 14.9
Result after tax from investments in associates -3 0 -2 4
Other financial income and expenses, net -81 -51 -77 -60
Profit before tax 126 123 578 480
Net profit for the period 100 98 458 388
Balance sheet (mDKK)
Non-current assets 14,138 11,220 14,306 11,308
Total assets 18,208 14,523 18,627 14,957
Equity 5,809 5,182 6,314 4,825
Net interest-bearing debt 6,908 4,887 5,848 4,783
Net working capital -195 -214 -836 -711
Invested capital 13,882 10,900 13,352 10,410
Cash flows (mDKK)
From operating activities -330 -281 1,311 1,133
From investing activities -150 -123 -270 -184
Free cash flow -480 -404 1,041 949
Q1
2024
Q1
2023
Q2
2024
Q2
2023
Share ratios (DKK per share of DKK 2)
Number of shares (millions) 50.2 50.2 50.2 50.2
Earnings per share (EPS) 2.0 2.0 9.2 7.8
Diluited earnings per share 2.0 2.0 9.2 7.8
Free cash flow per share -9.6 -8.0 20.8 19.2
Financial ratios (%)
Free cash flow as a percentage of net revenue -15 -16 25 26
Cash conversion -480 -412 227 245
* Running 12 months
Ratios comprised by the "Recommendations and Financial Ratios" issued by the Chartered Financial
Analyst Society Denmark's Committee for Accounting standards have been calculated according to
the recommendations.
28ROYAL UNIBREW Interim Report for January 1 - June 30, 2024
Financial highlights and ratios
for January 1 - June 30, 2020-2024
2024
2023
2022
2021
2020
Volume (million hectolitres) 8.4 6.6 6.5 6.0 5.3
Income Statement (mDKK)
Net revenue 7,379 6,147 5,373 3,905 3,457
EBITDA 1,197 976 940 927 833
EBITDA margin (%) 16.2 15.9 17.5 23.7 24.1
EBIT 866 710 720 750 663
Organic EBIT growth 16 0 -13 13 -7
EBIT margin (%) 11.7 11.6 13.4 19.2 19.2
Result after tax from
investments in associates -5 4 351 15 4
Other financial income
and expenses, net -158 -111 -25 -16 -19
Profit before tax 704 603 1,046 749 648
Net profit for the period 559 486 926 594 505
Balance Sheet (mDKK)
Non-current assets 14,306 11,308 11,143 7,123 6 ,974
Total assets 18,627 14,957 14,651 9,101 8,837
Equity 6,314 4,825 4 ,574 2,889 3,545
Net interest-bearing debt 5,848 4,783 4,416 2,618 2,114
Net working capital -837 -711 -1,080 -990 -650
Invested capital 13,352 10,410 9,815 5,908 6,076
Cash Flows (mDKK)
From operating activities 980 852 562 885 702
From investing activities -420 -307 -252 -202 -112
Free cash flow 560 545 310 683 590
2024
2023
2022
2021
2020
Share Ratios (DKK per share of DKK 2)
Number of shares (millions) 50.2 50.2 50.2 48.8 49.4
Earnings per share (EPS) 11.2 9.8 19.2 12.3 10.1
Diluted earnings per share 11.2 9.8 19.2 12.3 10.1
Free cash flow per share 11.2 11.0 6.2 14.2 12.0
Year-end price per share 552.0 610.0 628.4 798.8 551.8
Financial ratios (%)
Free cash flow as a percentage
of net revenue 8 9 6 17 17
Cash conversion 100 112 33 115 117
Return on invested capital incl. goodwill
(ROIC)* 12 12 15 21 18
Return on invested capital excl. goodwill
(ROIC)* 19 19 24 34 29
Capex as a percentage of net revenue 6 5 5 6 4
Net interest-bearing debt/EBITDA* 2.4 2.4 2.2 1.3 1.2
Return on equity (ROE) 9 9 22 18 16
Equity ratio 34 32 31 32 40
* Running 12 months
Ratios comprised by the "Recommendations and Financial Ratios" issued by the Chartered Financial
Analyst Society Denmark's Committee for Accounting standards have been calculated according to
the recommendations.
29ROYAL UNIBREW Interim Report for January 1 - June 30, 2024