Interim Report 1 January - 30 June 2014

| Source: Royal UNIBREW A/S



Interim Report for 1 January – 30 June 2014

Earnings and revenue increase.
Upward adjustment of earnings outlook.

Net revenue for H1 2014 showed a 67% increase to DKK 2,992 million due to the acquisition of Hartwall in August 2013. Measured organically (excluding Hartwall in 2014), sales and net revenue showed increases of 1% and 4%, respectively, for H1 2014. Measured on a pro forma basis (including Hartwall in 2013), net revenue for H1 as well as Q2 2014 remained unchanged even though, as expected, net revenue in Finland was lower (a 4% decrease, pro forma) due to the negative development of the Finnish economy. The market shares on Royal Unibrew’s branded products were generally maintained. Earnings before interest and tax (EBIT) for H1 2014 amounted to DKK 361 million after non-recurring costs of approx DKK 50 million for restructuring of Hartwall – an increase of DKK 136 million over H1 2013. Measured on a pro forma basis, EBIT for H1 2014 went up by DKK 57 million, and EBIT margin for H1 2014 showed an increase from 10.2% to 12.1%. The earnings increase is due to a favourable product mix development, improved efficiency as well as a shift in marketing expenses. Earnings were higher in all segments in Q2 as well as in H1. Free cash flow for H1 2014 amounted to DKK 340 million compared to DKK 206 million in H1 2013. Net interest-bearing debt was reduced by DKK 337 million in H1 2014 to DKK 2,042 million, and NIBD/EBITDA, calculated on a pro forma running 12-month basis, was 1.9 against 2.3 at the end of 2013. The earnings outlook for 2014 is adjusted upwards, and the target for medium-term EBIT margin is increased from 13% to 14%.


”Our earnings continued to improve in H1, due to organic revenue growth as well as increased efficiency. Growth remained -highest in our malt beverage business, but North Western Europe also showed satisfactory growth driven by, among other things, a number of commercial initiatives, including the Egekilde Fruits and Royal Shandy launches as well as the new Faxe Kondi communication platform.  The integration of Hartwall is progressing to our satisfaction. In the commercial area we are directing efforts to strengthen our position, which will continue in the coming periods; when it comes to our efficiency measures, we are ahead of schedule. We are adjusting our earnings outlook upwards primarily due to the extremely good summer weather and the increased efficiency at Hartwall”, says Henrik Brandt, CEO.


Based on results for H1, the very satisfactory summer weather and a faster implementation of the efficiency plan for Hartwall, the previously announced earnings outlook for the year is adjusted upwards as follows:

Net revenue: DKK 5,950-6,100 million (previously: DKK 5,750-6,050 million)

EBITDA: DKK 1,090-1,140 million (previously: DKK 965-1,015 million)

EBIT: DKK 790-840 million (previously: DKK 665-715 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 Friday, 15 August 2014, at 9 am by audiocast at tel one of the following dial-in numbers:

Danish participants dial: +45 32 72 80 18

US participants dial: +1 866 682 8490

International number: +44 (0) 145 255 5131

The presentation may also be followed at Royal Unibrew’s website



27 November 2014  Interim Report for the period 1 January – 30 September 2014



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



This Interim Report contains “forward-looking statements”. Undue reliance should not be placed on forward-looking statements because they relate to and depend on circumstances that may or may not occur in the future and actual results may differ materially from those in forward-looking statements. Forward-looking statements include, without limitation, statements regarding our business, financial circumstances, strategy, results of operations, financing and other plans, objectives, assumptions, expectations, prospects, beliefs and other future events and prospects. We undertake no obligation, and do not intend to publicly update or revise any of these forward-looking statements, unless prescribed by law or by stock exchange regulations.