Royal UNIBREW A/S
Mar 6, 2018

Annual Report 2017

Annual Report 2017

Company Announcement No. 14/2018 — 6 March 2018

Annual Report 2017

Efficient strategy execution delivers continued progress

"2017 showed continued progress for Royal Unibrew in spite of poor summer weather in Northern Europe. The positive development is due, not least, to a reinforcement of our market positions in most of the markets in which we operate. We achieved our best results ever in the past year, and revenue increased in all parts of our business adjusting for the effect of changed customer agreements and a negative exchange rate effect in our malt business. As a result of the earnings improvement combined with our outlook, we are increasing our medium-term EBIT target from 16% to about 17%. At the same time, we are continuing our distributions to shareholders by way of a share buy-back programme of up to DKK 400 million and the distribution of ordinary dividend of DKK 8.90 per share, corresponding to a 9% increase on 2016. With this distribution of a total of DKK 870 million we maintain our strategic flexibility", says Hans Savonije, President & CEO.   

Selected Financial Highlights and Ratios         Q1-Q4 Q4
MDKK   2017 2016   2017 2016
Sales (thousand hectolitres)   9,556 9,678   2,223 2,221
Net revenue   6,384 6,340   1,516 1,466
EBITDA   1,362 1,306   286 254
EBITDA-margin (%)   21.3 20.6   18.9 17.3
Earnings before interest and tax (EBIT)   1,069 1,001   208 176
EBIT-margin (%)   16.7 15.8   13.7 12.1
Proft before tax   1,056 998   203 180
Net profit for the year   831 784   163 143
Free cash flow   950 1,022   239 187
 
 
           
MDKK   Q4 2017 Q4 2016 Q4 2015 Q4 2014  
Net interesting-bearing debt   975 991 1,184 1,553  
NIBD/EBITDA (current 12 months)   0.7 0.8 1.0 1.4  
Equity ratio (%)   42 48 43 40  

 

Outlook for 2018

           
    Outlook Actual Actual  
MDKK   2018 2017 2016  
Net revenue   6,650-6,900 6,384 6,340  
EBITDA   1,450-1,550* 1,362 1,306  
EBIT   1,090-1,190 1,069 1,001  

*Approx. DKK 50 million impact from implementing IFRS 16 (operational leasing)

The Annual Report has been published via Nasdaq Copenhagen A/S and is enclosed with this announcement. The Annual report is also available on www.royalunibrew.com.

For further information on this announcement:

Hans Savonije, President & CEO, tel. +45 22 20 80 17.

It will be possible for investors and analysts to follow Royal Unibrew's presentation of the Annual Report on Wednesday, 7 March 2018, at 9 am by audiocast at one of the following dial-in numbers

Denmark:  +45 35 15 81 21

United Kingdom:  +44(0)330 336 9411

United States of America:  + 323 794 2093

Financial Calendar 2018

24 April 2018              Interim Report for the period 1 January — 31 March 2018

24 April 2018              Annual General Meeting at the Bella Center in Copenhagen

27 August 2018          Interim Report for the period 1 January — 30 June 2018

21 November 2018    Interim Report for the period 1 January — 30 September 2018  

Disclaimer

This announcement contains forward-looking statements, including statements about the Group's sales, revenues, earnings, spending, margins, cash flow, inventory, 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, estimates, 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. The Group assumes no obligation to update any such forward-looking statements 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, development in the demand for the Group's products, introduction of and demand for new products, 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, environmental issues and other unforeseen factors.

New risk factors can 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.

The Annual Report has been prepared in Danish and English. In case of discrepancy the Danish version shall prevail.