Royal Unibrew jumps as Q3 profit rises, margin widens despite cost inflation

Investing.com — Royal Unibrew shares jumped after the Danish brewer reported third-quarter operating profit growth of 5.5% and a wider margin, though it narrowed its full-year profit guidance, trimming the top of the range.

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Operating profit (EBIT) rose 5.5% to 820 million Danish crowns in the third quarter, and the EBIT margin widened to 18.9% from 18.1%. The company said it delivered margin expansion “despite rising cost inflation and weather-related headwinds in parts of the Nordics.” Gross margin rose to 46.3% from 45.8%.

Earnings per share rose 10.6% to 12.5 crowns, and free cash flow rose 37% to 706 million crowns.

Volume rose 1.4% to 5 million hectoliters. Net revenue rose 1.0% to 4.35 billion crowns, or about 4.0% underlying, once the exit from lower-margin activities is excluded. Chief Executive Lars Jensen said market share rose in most markets, with own brands the main growth driver.

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For the first nine months, EBIT rose 6.3% to 1.85 billion crowns, earnings per share rose 10.2% to 26.9 crowns, and free cash flow rose 20% to 1.16 billion crowns. Net debt was 6.16 billion crowns, or 2.0 times EBITDA.

Royal Unibrew narrowed its 2026 organic EBIT growth guidance to 6% to 8% from 6% to 10%, which implies EBIT of 2.325 billion to 2.38 billion crowns, against 2.2 billion in 2025. The company cited difficult market conditions in Finland, supply chain problems in the Benelux and higher cost inflation, along with 12 million crowns of accelerated amortization tied to its PepsiCo partnership.

Net revenue is still expected to be slightly above 2025.

The group also cut its capital spending forecast to about 6% of net revenue from about 7%, as some projects shift into 2027. “The inflationary environment remains uncertain and could put further pressure on consumer sentiment and discretionary spending,” Jensen said.

Original Article

Royal Unibrew jumps as Q3 profit rises, margin widens despite cost inflation

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