Earnings Release • Aug 24, 2011
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Download Source FileCOMPANY ANNOUNCEMENT nO 29/2011 - 24 AUGUST 2011
Good first half year - continued profit improvement
The positive earnings trend in Royal Unibrew continued in Q2 2011, and compared
to last year earnings before interest and tax (EBIT) for the period 1 January -
30 June increased by DKK 46 million to DKK 198 million. Continued focus on cost
control and high efficiency supports the performance trend. Sales volumes -
measured in organic terms - increased by 5% a development above expectations,
whereas tough price competition and a changed market mix resulted in unchanged
revenue. A number of new innovative measures, including consumer-involving
campaigns and launching of new brands, product variants and packaging, were
introduced in the main markets in Q2. The outlook for 2011 is maintained, but
due to unusually bad weather at the beginning of Q3 and also a certain amount
of consumer restraint, especially in Italy, the outlook is specified so that
net revenue and earnings are expected to be at the lower end of the ranges
previously announced.
”We have generally maintained our market shares in H1 in spite of tough
competition in all markets. This is among other things because we keep our
focus on innovation and strengthening of our market position. At the same time,
we continue improving our financial results - albeit with lower revenue due to
the divestment of non-strategic activities in Poland and the Caribbean. The
positive performance trend supports the realisation of our long-term financial
targets. Having realised the major structural changes to our business - most
recently through the sale of our ownership share of Solomon Breweries - we will
now be able to concentrate fully on developing our core activities and ensuring
implementation of the main priorities set for 2011. We are well on track in all
areas”, says Henrik Brandt, CEO.
HIGHLIGHTS
-- Royal Unibrew has generally maintained market shares on branded beers as
well as soft and malt drinks.
-- Organically, net revenue increased in Q2, and was unchanged in H1 as
compared to 2010. Divestment of activities reduced net revenue by just
below 8% in H1 2011.
-- EBITDA went up by DKK 14 million in H1 to DKK 268 million.
-- H1 earnings before interest and tax (EBIT) increased by DKK 46 million over
2010 amounting to DKK 198 million.
-- Profit before tax amounted to DKK 180 million in H1 compared to DKK 105
million in 2010.
-- Free cash flows amounted to DKK 199 million in H1 compared to DKK 217
million in 2010.
-- In spite of total distribution to shareholders of DKK 174 million, net
interest-bearing debt was reduced by DKK 35 million in H1 2011 to DKK 735
million.
OUTLOOK
The outlook is maintained, but due to unusually bad weather at the beginning of
Q3 and also due to a certain amount of consumer restraint, especially in Italy,
the outlook is specified so that net revenue and earnings are expected to be at
the lower end of the ranges previously announced.
The outlook is maintained:
-- Net revenue: DKK 3,400-3,550 million
-- EBITDA: DKK 575-625 million
-- EBIT: DKK 435-485 million
For further information on this Announcement:
Henrik Brandt, CEO, tel + 45 56 77 15 13
It will be possible for investors and analysts to follow Royal Unibrew's
presentation of the Interim Report on Wednesday, 24 August 2011, at 9 am by
webcast. Please register at the Royal Unibrew website www.royalunibrew.com.
CONTENTS
Page
Highlights 1
Financial Highlights and Key Ratios 3
Management's Review 4
Financial Review 5
Outlook 8
Developments in Individual Market Segments 9
Statement by the Executive and Supervisory Boards on the Interim Report 12
Financial Statements
Income Statement 13
Statement of Comprehensive Income 14
Assets 15
Liabilities and Equity 16
Cash Flow Statement 17
Statement of Changes in Equity 18
Notes 19
Financial Highlights and Key Ratios for the Period 1 January - 30 June 24
2007 - 2011
Practical Information
Financial Calendar 25
Company Announcements 25
Disclaimer 25
Royal Unibrew produces, markets, sells and distributes quality beverages
focusing on branded products within beer, malt and soft drinks, including soda
water, mineral water and fruit juices. We operate as a leading regional player
in a number of markets in Western and Eastern Europe and in the international
malt drinks markets. Our Western European main markets comprise primarily
Denmark, Italy as well as Cross-border Trade and Germany. The Eastern European
markets comprise Lithuania and Latvia. The international malt drinks markets
comprise primarily a number of countries in the Caribbean and Africa as well as
cities in Europe and North America with high concentration of inhabitants from
the Caribbean and African areas in which malt drinks are popular.
In Denmark we are a leading supplier of beer and soft drinks with a number of
strong brands, and in Italy we are among the market leaders in the super
premium segment with Ceres Strong Ale. In both Latvia and Lithuania, we are
among the two leading beverage businesses holding considerable market positions
within beer and soft drinks, including fruit juices. In the international malt
drinks markets, we are among the market leaders in the premium segment with
Vitamalt.
To read more, visit www.royalunibrew.com.
The Announcement has been prepared in Danish and English. In case of
discrepancy, the Danish version shall prevail.
FINANCIAL HIGHLIGHTS AND KEY RATIOS
(H1 and Q2 unaudited)
H1 2011 H1 2010 Q2 2011 Q2 2010 1/1 - 31/12
2010
Earnings before interest and 197.9 152.0 158.1 142.0 416.9
tax (EBIT)
Income after tax from 4.2 11.6 10.4 13.3 31.5
investments in associates
Royal Unibrew A/S' share of 127.8 69.7 115.2 87.9 278.1
profit
RU's share of earnings per DKK 11.5 6.3 10.4 7.9 25.1
10 share
End of period price per DKK 10 339.0 196.0 339.0 196.0 332.0
share
Free cash flow as a percentage 11.5 11.5 22.9 20.2 12.3
of net revenue
Ratios comprised by the “Recommendations and Financial Ratios 2010” issued by
the Danish Society of Financial Analysts have been calculated according to the
recommendations.
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