Annual Report 2019

March 10, 2020 at 5:08 PM CET

Company Announcement No 2/2020 – 10 March 2020

Annual Report 2019

During 2019, Royal Unibrew delivered solid growth in both revenue and earnings – while at the same time preparing our business for a future that demands new solutions from existing trusted brands, products as well as our teams and partners.

Simultaneously with the adaptation of our operations to new market demands and expectations, the sustainability of both our way of operating and of our commitment to create value for all in our value chain delivers solid and continued advances. Our EBIT margin increased from 18.4% to 19.1% and based on the strengthening of our earnings potential as well as considerations of our opportunities going forward, we increase our EBIT margin target from a range of 18-19% to a range of 19-20%. In addition, for the first time, we recommend a distribution of more than DKK 1 billion to our shareholders via an increase of the ordinary dividend to DKK 12.20 per share (2018: DKK 10.80 per share) in combination with a share buy-back program of up to DKK 400 million. With this distribution of a total of DKK 1,010 million we maintain our strategic flexibility. In spite of the current circumstances with COVID-19, we expect in 2020 to deliver an EBIT around 2019.

Income Statement    
Selected financial highlights and ratios    
mDKKQ1-Q4 2019Q1-Q4 2018Q4 2019Q4 2018
Volumes (thousand hectolitres)11,02410,8052,5342,404
Net revenue7,6927,2981,7871,674
EBITDA margin (%)23.622.920.219.7
Earnings before interest and tax (EBIT)1,4691,339267247
EBIT margin (%)19.118.414.914.8
Profit before tax1,4581,328267248
Net profit for the period1,1401,040222188
Free cash flow1,159942105-92


mDKKQ4 2019Q4 2018Q4 2017Q4 2016
Net interest-bearing debt2,7052,522975991
NIBD/EBITDA (current 12 months)
Equity ratio (%)37364248

Outlook for 2020
In spite of the current circumstances with COVID-19, we expect to deliver an EBIT around 2019.

mDKKActual 2019Actual 2018
Net revenue7,6927,298

The Annual Report 2019 has been published via Nasdaq Copenhagen A/S and is enclosed with this announcement. The Annual Report 2019 is also available on

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 2019 on Wednesday, 11 March 2020, at 9 am (CET) by audiocast at one of the below dial-in numbers followed by the confirmation code.

Denmark:                                      +45 32 72 80 42
United Kingdom:                            +44 (0) 2071 928000
United States of America:               +163 151 074 95
Confirmation code:                         3507909

Financial Calendar for 2020
28 April 2020Trading statement for the period 1 January - 31 March 2020
28 April 2020Annual General Meeting 2020 at Studie 1, Filmbyen, Aarhus
24 August 2020Interim Report for the period 1 January - 30 June 2020
17 November 2020Trading statement for the period 1 January - 30 September 2020

Forward-looking statements
This Annual Report contains forward-looking statements, including statements about the Group’s sales, revenue, earnings, spending, margins, cash flows, inventories, 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. 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, development 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, 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.