Q3 Interim Report
Total Page:16
File Type:pdf, Size:1020Kb
hovedpunkter MANAGEMENT'S REVIEW | MANAGEMENT'S STATEMENT | FINANCIAL STATEMENTS 1 Company Announcement No 67/2018 – 21 November 2018 Interim Report for 1 January - 30 September (9M) 2018 Consistent commercial execution and historically warm summer drive solid earnings growth Due to a wide range of commercial initiatives and a historically warm summer in Northern Europe in 2018, Acquisitions Royal Unibrew posted solid financial results for the first three quarters of 2018. Net revenue increased With the expected closing of the CULT acquisition in December 2018, four acquisitions will have been by 10% adjusted for M&A activities and 16% in total, while the EBIT margin ended at 19.4% compared to closed in less than 12 months. 17.7% for the same period last year. Outlook Throughout 2018, we have seen a strong commercial execution in our core markets supported by our broad The full-year outlook is narrowed and slightly upgraded. product offering, a high level of innovation and commercial activities. Furthermore, we have expanded our offerings into new product categories to help our customers meet a more diversified consumer demand • Net revenue: DKK 7,200-7,300 million (August 2018: 7,000-7,200 million) across sales channels. Key brand initiatives have been the introduction of new packaging formats for • EBITDA: DKK 1,660-1,685 million (August 2018: 1,625-1,675 million) our Crodo products, Supermalt Ginger Beer in the UK and a Jaffa low-sugar range in Finland. Lastly, we • EBIT: DKK 1,315-1,340 million (August 2018: 1,275-1,325 million) have seen the launch of beers with non-/low-alcohol content with the products Royal Organic 2.3% and Heineken 0.0%. The results for the first three quarters are in line with our guidance updated in August 2018. The acquisition SELECTED FINANCIAL HIGHLIGHTS AND KEY RATIOS of Bev.Con ApS (CULT) is expected to be closed during December 2018 following approval from the Danish competition authorities. CULT is not expected to change the full-year guidance. Q1-Q3 Q1-Q3 Q3 Q3 mDKK 2018 2017 2018 2017 Financial highlights Q1-Q3 2018 Net revenue for Q1-Q3 2018 amounted to DKK 5,624 million compared to DKK 4,869 million last year and Sales (thousand hectolitres) 8,401 7,599 3,175 2,579 was positively affected by solid organic growth and the impact from the acquired businesses Terme di Crodo and Etablissements Geyer Fréres (Lorina) as well as the extraordinarily good weather in Northern Net revenue 5,624 4,869 2,106 1,686 Europe. Acquisitions contributed revenue of DKK 288 million during the first nine months. EBITDA 1,343 1,076 543 433 EBITDA margin (%) 23.9 22.1 25.8 25.7 EBIT for Q1-Q3 2018 was DKK 1,092 million compared to DKK 862 million last year. The improvement Earnings before interest and tax (EBIT) 1,092 862 451 359 was driven by increased revenue, improved mix and efficiency gains through operational leverage. It is EBIT margin (%) 19.4 17.7 21.4 21.3 estimated that the extraordinarily good weather during the summer of 2018 has contributed to an increase Profit before tax 1,080 853 444 355 in EBIT of approx. DKK 70-90 million. The newly acquired businesses in France and Italy also contributed positively to EBIT. Profitability increased in all segments. Net profit for the period 852 668 351 278 Free cash flow 1,034 711 420 214 Market shares slightly improved compared to the same period last year, mainly driven by an increase in Net interest-bearing debt 2,397 1,062 market shares during Q3 as our total supply chain proved its agility in a fast-moving and demanding market. ROIC incl. goodwill* 21 20 ROIC excl. goodwill* 34 30 Free cash flow amounted to DKK 1,034 million for the first nine months compared to DKK 711 million NIBD/EBITDA* 1.5 0.8 last year. Equity ratio (%) 34 46 Net interest-bearing debt amounted to DKK 2,397 million, which is an increase of DKK 1,335 million from *(running 12 months) last year. The increase is primarily related to the acquisitions. ROYAL UNIBREW A/S · FAXE ALLÉ 1 · DK-4640 FAXE · CVR NO 41956712 finanskalender + udsagn om fremtiden MANAGEMENT'S REVIEW | MANAGEMENT'S STATEMENT | FINANCIAL STATEMENTS INTERIM REPORT FOR 1 JANUARY - 30 SEPTEMBER 2018 ROYAL UNIBREW 2 For further information Forward-looking statements Hans Savonije, President & CEO, tel. +45 22 20 80 17 This Interim Report contains forward-looking Some important risk factors that may have direct Lars Jensen, CFO, tel. +45 29 23 00 44 statements, including statements about the bearing on the Group’s actual results include, Group’s sales, revenue, earnings, spending, mar- but are not limited to: economic and political un- It will be possible for investors and analysts to follow Royal Unibrew’s presentation of the Interim Report gins, cash flows, inventories, products, actions, certainty (including interest rates and exchange on Thursday, 22 November 2018, at 9 am CET by audiocast at the following telephone numbers: plans, strategies, objectives and guidance with rates), financial and regulatory developments, respect to the Group’s future operating results. development in the demand for the Group’s prod- Participants from Denmark: +45 35 15 80 49 Forward-looking statements include, without lim- ucts, introduction of and demand for new products, Participants from the UK: +44 (0) 330 336 9105 itation, any statement that may predict, forecast, changes in the competitive environment and the Participants from the USA: +1 929-477-0402 indicate or imply future results, performance or industry in which the Group operates, changes in achievements, and may contain the following consumer preferences, increasing industry con- The presentation may also be followed at Royal Unibrew’s website www.royalunibrew.com. words or phrases “believe, anticipate, expect, es- solidation, the availability and pricing of raw ma- timate, intend, plan, project, will be, will continue, terials and packaging materials, cost of energy, likely to result, could, may, might”, or any varia- production- and distribution-related issues, infor- Financial Calendar 2019 tions of such words or other words with similar mation technology failures, breach or unexpected 6 March 2019 Annual Report 2018 meanings. Any such statements involve known termination of contracts, price reductions resulting and unknown risks, estimates, assumptions and from market-driven price reductions, determina- 25 April 2019 Interim Report for the period 1 January - 31 March 2019 uncertainties that could cause the Group’s actual tion of fair value in the opening balance sheet of 25 April 2019 Annual General Meeting 2019 results, performance or industry results to differ acquired entities, litigation, environmental issues 27 August 2019 Interim Report for the period 1 January - 30 June 2019 materially from the results expressed or implied and other unforeseen factors. in such forward-looking statements. Royal Uni- 13 November 2019 Interim Report for the period 1 January - 30 September 2019 brew assumes no obligation to update or adjust New risk factors may emerge in the future, which any such forward-looking statements (except for the Group cannot predict. Furthermore, the Group as required under the disclosure requirements for cannot assess the impact of each factor on the listed companies) to reflect actual results, changes Group’s business or the extent to which any indi- in assumptions or changes in other factors affect- vidual risk factor, or combination of factors, may ing such forward-looking statements. cause results to differ materially from those con- tained in any forward-looking statement. Accord- ingly, forward-looking statements should not be relied on as a prediction of actual results. INTERIM REPORT FOR 1 JANUARY - 30 SEPTEMBER 2018 ROYAL UNIBREW 2 indholdsfortegnelse MANAGEMENT'S REVIEW | MANAGEMENT'S STATEMENT | FINANCIAL STATEMENTS INTERIM REPORT FOR 1 JANUARY - 30 SEPTEMBER 2018 ROYAL UNIBREW 3 Contents Review Profile Highlights............................................................................................................................. 1 Financial Calendar .............................................................................................................. 2 Royal Unibrew is a leading beverage provider Forward-looking Statements .............................................................................................. 2 in a number of markets – primarily in North- Financial Highlights and Key Ratios ................................................................................... 4 ern Europe, Italy, France and in the interna- Management’s Review ......................................................................................................... 5 tional malt beverage markets. Financial Review .................................................................................................................. 6 Outlook ................................................................................................................................. 8 We produce, market, sell and distribute qual- Developments in Individual Market Segments ................................................................... 9 ity beverages with focus on branded products Management’s Statement ................................................................................................... 13 within beer, malt beverages and soft drinks as well as cider and long drinks. Financial Statements Income Statement ............................................................................................................... 14 Our main markets are Denmark,