Company Announcement No 23/2023 – August 22, 2023
Interim Report for H1 2023
• Our multi-beverage businesses in Northern Europe continue to
perform well and EBIT in Northern Europe grew organically by
19% in H1 2023 (H1 2022: -9%).
• The Italian wholesale channel for On-Trade beer normalized
during Q2 thereby ending a period of de-stocking that impacted
the first half of the year negatively. In the past three months
(May to July), we have experienced a balanced sell-in and
sell-out in the Italian wholesale channel for On-Trade beer.
• We have implemented price increases in all markets during
the first half of 2023, which impact net revenue positively. Net
revenue increased organically by 5% in Q2 2023 (H1 2023:
6%), including a negative impact of around 2 percentage points
from currency developments. This resulted in a positive price/
mix of 9% for the quarter (H1 2023: +9%), including the negative
currency impact. The consumer dynamics remain relatively
strong across our European footprint.
• EBIT grew organically by 3% in Q2 2023 (H1 2023: 0%), marking
the first quarter with positive organic EBIT growth since Q1
2021. M&A contributed by around DKK 10 million in Q2 2023
(H1 2023: around DKK -10 million) as a consequence of the
significant devaluation of Norwegian Kroner. For H1 2023 the
negative currency impact on EBIT was around DKK 30 million.
• Free cash flow in Q2 2023 was DKK 949 million, an improvement
of DKK 280 million compared to last year, resulting in a first half-
year free cash flow of DKK 545 million (H1 2022: DKK 310 million).
• Full-year outlook for 2023 is now net revenue around DKK 13
billion (previously: DKK 13-14 billion) and EBIT of DKK 1,600-
1,750 million (previously: DKK 1,550-1,750 million).
CEO Lars Jensen comments:
“We delivered strong top line growth
in H1 2023, as our multi-beverage businesses in Northern Europe
continue to carry on strongly. We have seen inflation in input costs
since the beginning of 2021, and I am pleased to say that we have
reached our ambition of mitigating the absolute increase in input
costs during Q2. However, there is still inflation from e.g. salary
increases and currency-related inflation that need to be mitigated.
In Italy, the de-stocking ended in Q2. Volumes remain weak due
to poor weather and tough comparable growth numbers from last
year, albeit Ceres is still gaining market share in the Italian market on
sell-out data.
In April, we received an updated ESG risk rating from Morningstar
Sustainalytics placing us as number one in the beer, wine and spirits
sector. According to Morningstar Sustainalytics, we improved our
ESG performance by 7%, positioning us as an Industry Top Rated
company. I am very proud of this acknowledgement, which is a
great testament of all the hard work we are doing as in regards to
the ESG agenda. The hard work is not over; we will continue our
efforts to reduce our environmental footprint in the years to come.
Finally, I am excited about our recent agreements to acquire Vrumona
in the Netherlands and production capacity in Italy. Vrumona is the
second largest soft drink company in the Netherlands, will make up
a new growth platform for Royal Unibrew in Western Europe and is
expected to drive organic earnings growth in the coming years. The
acquisition of production capacity in Italy is a result of our strong
belief in our Italian business and the Italian market,"
Lars Jensen
continues.
Selected financial highlights and key ratios
mDKK
Q2
2023
Q2
2022
H1
2023
H1
2022
FY
2022
Volume
(million hectoliters) 3.9 3.8 6.6 6.5 13.4
Organic volume growth (%) -4 5 -3 2 1
Net revenue 3,595 3,211 6,147 5,373 11,487
Organic net revenue growth
(%) 5 15 6 15 11
EBITDA 674 623 976 940 1,997
EBITDA margin (%) 18.7 19.4 15.9 17.5 17.4
EBIT 536 511 710 720 1,516
Organic EBIT growth (%) 3 -13 0 -13 -14
EBIT margin (%) 14.9 15.9 11.6 13.4 13.2
Profit before tax 480 851 603 1,046 1,785
Net profit for the period 388 772 486 926 1,491
Free cash flow 949 669 545 310 577
Net interest-bearing debt 4,783 4,416 4,460
ROIC incl. goodwill (%)* 12 15 13
ROIC excl. goodwill (%)* 19 24 22
NIBD/EBITDA (times)* 2.4 2.2 2.2
Equity ratio (%) 32 31 36
Earnings per share (EPS) 7.8 15.6 9.8 19.2 30.5
Earnings per share (EPS),
adjusted** 7.8 8.5 9.8 11.7 23.1
* Running 12 months
** Earnings per share (EPS) is adjusted for gain on remeasurement of invest-
ments in associates (DKK 360 million) in 2022
Organic EBIT growth of 3% in Q2 2023 – midpoint of full-year EBIT guidance raised
H1
2021
H1
2022
H1
2023
300
400
500
600
700
800
Financial highlights
The organic volume decline of 4% to 3.9 million hectoliters in
Q2 2023 was a consequence of tough comparable numbers
in Western Europe and International, whereas volumes in
Northern Europe increased organically by 3%. Poor weather
in Italy together with de-stocking in the wholesale beer
On-Trade channel in Italy resulted in an organic volume
decline of 29% in Western Europe. At the end of July, our
sales-in has balanced sales-out data for three months in a
row. Political and macroeconomic challenges in Africa also
continued into the second quarter of the year driving nega-
tive organic volume growth of -18% in International. For H1
2023, group volumes declined organically by 3% to 6.6 million
hectoliters corresponding to 2% reported growth.
Net revenue increased by 12% in Q2 2023 to DKK3,595
million compared to DKK 3,211 million in Q2 2022. This
corresponds to an organic growth of 5%, which is driven by
the implemented price increases, while negatively impacted
by the weaker Norwegian and Swedish Kroner (around 2
percentage points). The reported growth includes net revenue
from acquisitions done over the past 12 months. This impact
constitutes around 7 percentage points of the reported net
revenue growth and the majority comes from Hansa Borg. Net
revenue for H1 2023 amounted to DKK 6,147 million (H1 2022:
DKK 5,373 million) corresponding to an organic growth of 6%,
which is negatively impacted by the weaker Norwegian and
Swedish Kroner (around 2 percentage points).
In Q2 2023, Earnings before interest and tax (EBIT) increased
by DKK 25 million from DKK 511 million in Q2 2022 to DKK
536 million in Q2 2023. The EBIT margin declined by 1.0
percentage point to 14.9%. Acquisitions diluted the margin
2022. The increase is primarily explained by the payment of
dividend to shareholders whereas the positive free cash flow
impacted positively. Calculated on a 12-months basis, NIBD/
EBITDA was 2.4 (H1 2022: 2.2) and ROIC excluding goodwill
was 19% (H1 2022: 24%).
ESG highlights
The overall ESG performance has improved compared to
the same period last year. Our water consumption efficiency
improved in the first half of 2023 primarily driven by a change
in product mix, while our temporary shift from natural gas
to oil still impacts our CO
2
emissions and energy efficiency
negatively.
To become 100% CO
2
emission free at our production sites
by the end of 2025, we have established decarbonization
roadmaps with specific actions in all our markets. In June,
we reached important milestones with the inauguration of a
biogas plant in Finland and a solar park in Denmark.
As part of our climate targets submission for the Science
Based Target initiative (SBTi), we have stepped up on our
ambition for Scope 3 emissions and added a target of 50%
reduction in absolute CO
2
emissions from Scope 3 alone in
2030 compared to our 2019 baseline.
Our goal to provide 100% recycled, recyclable or reuseable
packaging in 2025 has been further addressed by introducing
cardboard solutions in our packaging systems; latest for our
new caning line in Italy, which enables substitition, or even
elimination, of plastics.
EBIT
EBIT H1
(mDKK)
by around 0.7 percentage points negatively impacted by the
weaker Norwegian Kroner. Profitability in Western Europe was
negatively impacted by poor weather and de-stocking in the
Italian wholesale beer On-Trade channel.
In H1 2023, EBIT was DKK 10 million lower than in H1
2022 and amounted to DKK 710 million (H1 2022: DKK 720
million). This represents a flat organic development, whereas
the reported decline was 1%. The weaker Norwegian and
Swedish Kroner impacted profitability negatively in the first
half-year of 2023. The reported EBIT margin declined by
1.8 percentage points whereof around 1.1 percentage points
were due to acquisitions.
The free cash flow for H1 2023 amounted to DKK 545 million
compared to DKK 310 million for H1 2022 driven by high
cash flow from operating activities more than compensating
higher capex.
In H1 2023, net interest-bearing debt increased by DKK 323
million (H1 2022: DKK 880 million) compared to year-end
Acquisitions
On July 3, 2023, Royal Unibrew
agreement to acquire the Dutch soft drink company Vrumona
from Heineken. Vrumona is the second largest soft drink
manufacturer in the Dutch market carrying a range of strong
own brands and partner brands. With a solid position in both
On- and Off-Trade, a portfolio with the majority of products
within the no/low sugar and calories segment, Vrumona fits
very well into Royal Unibrew’s operating model of strong, local
businesses with strong, local brands.
Vrumona operates seven production lines at its facility with
a current annual output of around 3.1 million hectoliters.
The company had net revenue of EUR 200 million in 2022,
whereas normalized EBITDA was EUR 25 million. Comple-
tion of the deal is expected in either September or October
this year, from where Royal Unibrew will acquire 100% of
Vrumona in consideration of EUR 300 million on a debt free
basis, resulting in an acquisition multiple (EV/EBITDA) of 12x.
The acquisition of Vrumona is expected to be EPS accretive
already in 2024, and ROIC on the acquisition is expected to
exceed WACC within three years.
On July 21, 2023, Royal Unibrew announced the signing of
an agreement to aquire a production facility in San Giorgio
di Nogaro, Italy, from Birra Castello. This strategic move
supports Royal Unibrew's growing Italian business as well
as its growing business in international markets. At the same
time, it aims to reduce the company's periodic capacity
constraints.
Royal Unibrew will take full ownership of the assets later this
year once certain transaction-related processes have been
fulfilled. The integration will be managed locally by Royal
Unibrew's strong Italian organization and is expected to be a
smooth and relatively uncomplicated process.
Full-year outlook
We are adjusting our full-year guidance for 2023 and lift the
midpoint of our EBIT range. The adjusted full-year guidance
is for net revenue of around DKK 13 billion (previously: DKK
13-14 billion) and EBIT in the range of DKK 1,600-1,750 million
(previously: DKK 1,550-1,750 million).
The announced acquisitions of Vrumona and the San Giorgio
brewery in Italy are not included in the outlook for 2023.
We have reduced our expectations to net revenue because
of poor weather in the Nordics in July and August and weak
Norwegian and Swedish Kroner.
The value of both Norwegian and Swedish Kroner has
deflated significantly in 2023. Assuming unchanged foreign
exchange rates for the remainder of the year, the full-year
negative impact on net revenue is expected to be around DKK
250 million.
We narrow our full-year EBIT guidance range by DKK 50
million as we are now through the high season meaning
that vi have greater visibility on this year’s development. We
have increased the low-end of guidance by DKK 50 million
primarily because of strong performance in our Nordic
multi-beverage markets, an end to the Italian de-stocking
and better visibility on the rest of the year.
The beverage industry continues to prove its resilient char-
acteristics, despite inflationary pressure, uncertain macro-
economic environment and geopolitical risks. Our quality
beverages are affordable and used for everyday indulgence,
and with our portfolio of strong local brands combined with
market leading partner brands we feel confident in keeping
the commercial momentum throughout the year.
We have now mitigated the input price inflation experienced
since the beginning of 2021, and some input prices have
started to roll-over, while others continue to increase. On top,
salary increases, driven by higher living costs, and curren-
cy-related inflation means that we will still need to increase
prices going forward.
Therefore, we need to remain focused on monitoring
consumers’ reactions to the higher prices. Consumer behavior
has been relatively unchanged and robust during the first
half of the year, but we do expect affordability to remain a
key focus for consumers during the rest of 2023 and conse-
quently, our channel mix to be slightly negative. We also
continue to expect private label and discount brands to gain
share in the overall market.
Net finance expenses, excluding currency related losses or
gains, are expected to be around DKK 200 million for the
full-year. We expect an effective tax rate of around 21% of
profit before tax, excluding result after tax from investments
in associates.
Capex for 2023 is expected to be around 5-6% of net revenue
as we have increased investments in ESG projects.
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 3
Contents
Profile
Royal Unibrew is a leading regional multi-beverage
company with strong local brand portfolios in
our main markets in the Nordic region, the Baltic
countries, Italy, France and Canada. In addition, our
products are sold in more than 70 countries in the
rest of the world.
We strive to offer our customers a broad portfolio of high-
quality beverages, which accommodates our consumers’
demands across a wide range of categories, including
beer, malt beverages, soft drinks, energy drinks, cider/RTD,
juice, water, wine and spirits.
Our business is based on a solid foundation of strong
local brands. As for Northern Europe, our local brands
are accompanied by well-known international brands on
license (PepsiCo and Heineken) and trading goods (e.g.,
Diageo), whereas our offering is a mix of own brands and
agency brands in Canada.
We want to be THE PREFERRED CHOICE as local
beverage partner that challenge the status quo by doing
better every day in a fun, agile and sustainable way,
creating good and enjoyable moments for our consumers.
Review
Highlights 1
Financial highlights and ratios 5
Management’s review 7
Financial review 9
Developments in individual
market segments 12
Management’s statement 15
Financial calendar 16
Forward-looking statements 16
Financial statements
Income statement 17
Statement of comprehensive income 17
Balance sheet 18
Cash flow statement 19
Statement of changes in equity 20
Notes
1. Significant accounting policies;
accounting estimates
and judgements 22
2. Assets and derivative financial
instruments measured at fair value 22
3. Segment reporting 23
4. Cash flow statement 24
5. Acquisition of enterprises 25
Quarterly financial highlights
and ratios 27
Financial highlights and ratios for the
Period January 1 - June 30, 2019-2023 28
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 4
Q2
2023
Q2
2022
H1
2023
H1
2022
FY
2022
Volume (million hectolitres) 3.9 3.8 6.6 6.5 13.4
Organic volume growth (%) -4 5 -3 2 1
Income statement (mDKK)
Net revenue 3,595 3,211 6,147 5,373 11,487
Organic net revenue growth (%) 5 15 6 15 11
EBITDA 674 623 976 940 1,997
EBITDA margin (%) 18.7 19.4 15.9 17.5 17.4
EBIT 536 511 710 720 1,516
Organic EBIT growth (%) 3 -13 0 -13 -14
EBIT margin (%) 14.9 15.9 11.6 13.4 13.2
Income after tax from investments in associates 4 355 4 351 362
Other financial income and expenses, net -60 -15 -111 -25 -93
Profit before tax 480 851 603 1,046 1,785
Net profit for the period 388 772 486 926 1,491
Balance sheet (mDKK)
Non-current assets 11,308 11,143 11,416
Total assets 14,957 14,651 14,474
Equity 4,825 4,574 5,158
Net interest-bearing debt 4,783 4,416 4,460
Net working capital -711 -1,080 -770
Invested capital 10,410 9,815 10,451
Cash flows (mDKK)
Operating activities 1,133 845 852 562 1,135
Investing activities -184 -176 -307 -252 -558
Free cash flow 949 669 545 310 577
Q2
2023
Q2
2022
H1
2023
H1
2022
FY
2022
Share ratios (DKK per share of DKK 2)
Earnings per share (EPS) 7.8 15.6 9.8 19.2 30.5
Earnings per share (EPS), adjusted* 7.8 8.5 9.8 11.7 23.1
Free cash flow per share 19.2 13.5 11.0 6.2 11.8
Dividend per share 14.5
Period-end price per share 610.0 628.4 495.3
Financial ratios (%)
Return on invested capital incl. goodwill (ROIC)** 12 15 13
Return on invested capital excl. goodwill (ROIC)** 19 24 22
Free cash flow as a percentage of net revenue 26 21 9 6 5
Cash conversion 245 87 112 33 39
Net interest-bearing debt/EBITDA (times) 2.4 2.2 2.2
Equity ratio 32 31 36
* Earnings per share (EPS) is adjusted for gain on remeasurement of investments in associates (DKK 360 million) in 2022
** Running 12 months
Ratios comprised by the “Recommendations and Financial Ratios” issued by the Danish Society's Commitee for
accounting standards have been calculated according to the recommendations.
Financial highlights and ratios
5ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Financial Highlights and Ratios
ESG highlights and ratios
Q2
2023
Q2
2022
H1
2023
H1
2022
FY
2022
PRODUCTION FIGURES
Production sites 19 14 19 14 19
Production volume, total million hl 3.4 3.2 6.2 5.8 12.1
CO
2
EMISSIONS
Scope 1 & 2 (location based)* million kgCO
2
9.7 9.2 20.5 18.7 40.5
Scope 1 & 2 (market based)** million kgCO
2
8.2 6.7 17.7 14.1 31.1
ENVIRONMENT & CLIMATE
Electricity GWh 24.6 22.5 49.0 42.0
98.7
Natural gas GWh 20.5 26.0 38.1 52.2
87.3
Purchased heat/steam/cooling GWh 7.3 7.7 17.6 18.2
34.6
Other GWh 9.9 0.6 24.8 1.5
27.0
Energy, total GWh 62.3 56.8 129.5 113.9 247.6
Water consumption, total million hl 10.2 10.0 18.7 18.1 37.5
Wastewater, total million hl 6.3 6.4 11.8 11.8 23.7
Hazardous waste million kg 0.0 0.0 0.0 0.0 0.1
Landfilled waste million kg 0.2 0.2 0.3 0.3 0.6
Incinerated waste million kg 0.2 0.2 0.4 0.4 0.7
Recycled waste million kg 2.8 2.3 6.1 4.1 10.5
Solid waste, total million kg 3.2 2.6 6.8 4.8 11.9
Recycled waste % % 89.1 88.5 90.5 85.4 88.3
Spent grain & yeast million kg 18.5 23.1 37.8 43.9 91.7
RELATIVE PRODUCTION FIGURES
Energy kWh/hl 18.4 17.6 20.8 19.5 20.5
CO
2
kg CO
2
/hl 2.9 2.9 3.3 3.2 3.3
Water hl/hl 3.0 3.1 3.0 3.1 3.1
Waste kg/hl 0.9 0.8 1.1 0.8 1.0
Q2
2023
Q2
2022
H1
2023
H1
2022
FY
2022
PACKAGING MATERIAL***
Cans % 48.3 42.8 43.8
Returnable glass bottles % 2.2 2.4 2.3
Non returnable glass bottles % 7.7 9.6 10.1
PET % 33.0 35.6 33.4
Kegs % 3.0 2.8 2.9
Bulk % 1.4 0.4 1.0
Other % 4.4 6.4 6.5
PEOPLE WELL-BEING & DEVELOPMENT
Occupational Health & Safety
Total number of lost-time incidents (LTIs)
Number 25 9 42 21 63
Lost time incident frequency
per million working hrs 16.1 6.8 13.4 8.1 11.1
Number of lost days
Number 148 96 311 229 1,153
Lost day rate
per million working day 95 73 99 88 203
Fatalities
Number 0 0 0 0 0
Employee engagement
Employee turnover % 4.5 4.1 8.4 8.7 17.1
Leave of absence due to illness
(not work related) % 0.6 0.7 1.5 1.8 3.6
Diversity
Employees by gender, total
Female % 27 27 26
Male % 73 73 74
Employees by gender, Int. Management teams
Female % 28 28 28
Male % 72 72 72
* Location based: Calculated CO
2
emission based on IEA country factors and DEFRA data
** Market based: Subtracting CO
2
emission covered by green certificates
*** Packaging material excluding Amsterdam Brewery Co. Ltd and Solera Norge AS
6
ROYAL UNIBREW Interim report for January 1 - June 30, 2023
0
1,000
2,000
3,000
4,000
5,000
0.0
0.5
1.0
1.5
2.0
2.5
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
H1
2019
H1
2022
H1
2023
H1
2021
H1
2020
150
320
490
660
830
1,000
0
6
12
18
24
30
4,000
6,000
8,000
10,000
12,000
14,000
10.0
12.0
14.0
16.0
18.0
20.0
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Management’s review
Business development
Our Nordic multi-beverage markets showed strong perfor-
mance in the first half of the year and delivered satisfactory
volume growth. Implemented price increases during the
first quarter of the year as well as the full-year effect of price
increases implemented during the past year, drove healthy
price/mix growth in the first half of 2023 in most markets.
The de-stocking in the wholesale beer channel in Italy
continued into the second quarter, but as high season in
Italy got underway, we saw a normalization of the channel
toward the end of Q2 2023. Sell-out data for Ceres in Italy
has remained strong despite the fact that the brand has been
up against very tough comparable sales-out figures from Q2
2022. The International division continues to be negatively
impacted by weak development in Africa caused by political
upheaval in some countries, a general weak economic devel-
opment and short supply of hard currencies.
Consumer dynamics have not changed notably during the
second quarter of 2023. In general, consumers continue to
do more frequent shopping at discount stores than they did
one year ago, resulting in a negative channel mix, as discount
stores do not have – or only have a limited selection of – our
mainstream and premium offerings. This means that the
beverage category has remained resilient in the present
consumer environment; although we still expect to see
further changes in consumer preferences in 2023, including
increasing consumer promotion hunting.
Performance in our focus growth areas have been good in the
second quarter with double-digit net revenue growth in the
cider/RTD category and the enhanced water category and
with high-single-digit net revenue growth in energy drinks.
Following seven quarters in a row with negative organic EBIT
growth, due to among others the significant input price infla-
tion experienced during the past two years, we realized posi-
tive organic EBIT growth in Q2 2023. It is our North European
multi-beverage markets that are driving growth, although
earnings development in Norway and Sweden were dented
by the weak currencies. The negative impact from weaker
Norwegian and Swedish Kroner is around DKK 30 million on
EBIT in the first half of the year.
ESG development
The overall ESG performance has improved compared to
the same period last year. We received an updated ESG risk
rating from Morningstar Sustainalytics in April 2023, where
Royal Unibrew was rated number one in the global beer, wine
and spirits sector. We improved our ESG performance by 7%
compared to last year, i.e. reducing our risk from 16.6 to 15.5.
In June, Royal Unibrew was recognized by an independent
jury for the best Annual Report in 2022 among C25 large cap
companies on NASDAQ OMX Denmark. The award was based
on our open and transparent ESG disclosure, where strategy,
targets and performance are presented coherently as well as
NIBD NIBD/EBITDA (running 12 months)
NIBD and NIBD/EBITDA
(mDKK) (times)
EBITDA EBITDA margin
EBITDA and EBITDA MARGIN
(mDKK) (%)
Net revenue EBIT margin
Revenue and EBIT margin running 12 months
(mDKK) (%)
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 7
our continued strong financial disclosure in our management
review.
When looking at efficiency, measured as energy and water
consumed as well as CO
2
emitted per produced unit, perfor-
mance is still impacted by our temporary switch from natural
gas to oil. Oil contains less calories compared to gas, resulting
in both higher energy consumption and an increase in CO
2
emissions. Efficiency is also affected by acquisitions, however,
Hansa Borg and Amsterdam Brewery are progressing on
efficiency projects, and we expect improvements as these
projects become fully implemented. On water consumption,
we see improved efficiency (organic and inorganic), which is
primarily driven by a change in product mix.
As our company grows steadily, the need for bringing forward
talents for critical positions is a continuous focus, leading to a
series of internal and external initiatives throughout the year
so far. Initiatives to optimize internal succession and develop-
ment have also been initiated. Employee turnover decreased
from 8.7% in H1 2022 to 8.4% in H1 2023, which helps in this
process.
The lost time incident frequency has, unfortunately, increased
in H1 2023 compared to H1 2022 and FY2022, from 8.1 in H1
2022 to 13.4 lost time incidents per 1 million working hours in
H1 2023. Despite being a clear focus area with high priority
the total number of LTIs has doubled (21 in H1 22 vs 42 in H1
23) primarily driven by production in Denmark. Consequently,
the Danish management is now directly involved in safety
walks (with a higher frequency) and incident investigations,
including root-cause assessment and implementation of
preventive measures.
We continue our journey toward becoming 100% CO
2
emission free at our production sites in 2025. To reach this
target, we have established decarbonization roadmaps
with specific actions in all our markets. In June, we reached
important milestones as we inaugurated two major facili-
ties to enable decarbonization. In Lahti, Finland, with a 100%
circular mindset, we have converted from fossil-based gas
to bio-based gas thanks to a new biogas plant that utilizes
our by-product, spent grain, and converts it into biogas. In
Denmark, we inaugurated our own solar park, which on sunny
days will make us self-sufficient in electricity at our Faxe
production facility. Solar panels are up and running in Italy at
our Crodo production facility and well under way in even more
markets. In addition, all markets have projects to decarbonize
– mainly converting natural gas to either biomass-based gas
or electrical boilers. The changes we see in the geopolitical
situation support and accelerate our efforts to decarbonize.
In December 2022, we submitted our climate targets to the
Science Based Target initiative (SBTi). We expect to get the
first feed-back from SBTi in August 2023. The two targets we
have set for decarbonization for 2025 and 2030 are aligned
with the requirements for limiting global temperature rise to
1.5°C as agreed in the 2015 Paris Accord. However, we have
stepped up on our ambition for scope 3 and added a target of
50% reduction in absolute CO
2
emissions from scope 3 alone
in 2030 compared to 2019 baseline.
By engaging with our suppliers, we believe to be equipped to
reach the goal of reducing the supply chain emissions by 50%
by 2030. The recent agreement to acquire the production
facility in San Giorgio de Nogaro, Italy, from Birra Castello is
also supporting our sustainability strategy, as it will reduce
our CO
2
footprint significantly by reducing the transporta-
tion needs for products sold in Italy and other international
markets.
Furthermore, Royal Unibrew’s goal to provide 100% recycled,
recyclable or reusable packaging in 2025 has been addressed
by introducing cardboard solutions in our packaging systems,
for example, as for our new filling line for cans in Italy that
enables substitution, or even elimination, of plastics.
Launch of long-term incentive plan for
executive management and key employees
In May 2023, Royal Unibrew launched a new share based
long-term incentive plan (LTIP) for selected key employees
for 2023.
The LTIP implies the grant of a number of performance share
units (PSU) to each key employee and are granted in 2023 for
vesting in 2026 depending on the company’s performance in
2023 to 2025.
The KPIs used for executive management in the program are
(a) organic EBIT achieved in 2025; (b) accumulated free cash
flow for the years 2023 to 2025; (c) CSR rating at the end of
2025 relative to a beverage peer group and (d) share price
development to the end of 2025.
Please find more information in company announcement no
18/2023, May 9, 2023.
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 8
Financial review
Income statement
Q2
2023
Q2
2022
%
change
H1
2023
H1
2022
%
change
FY
2022
Volumes, beverages (mHL) 3.9 3.8 1 6.6 6.5 2 13.4
Net revenue (mDKK) 3,595 3,211 12 6,147 5,373 14 11,487
Gross profit (mDKK) 1,564 1,485 5 2,595 2,436 7 4,869
Volumes for H1 2023 increased 2% compared to last year to a total 6.6 million hectoliters of
beverages.
Net revenue for H1 2023 increased by 14% and amounted to DKK 6,147 million compared to
DKK 5,373 million for the same period in 2022. Strong development in net revenue due to price
increases, extended partnerships and acquisitions.
Gross profit for H1 2023 was DKK 159 million above the H1 2022 figure and amounted to DKK
2,595 million equivalent to an increase of 7%. The gross profit margin was 3.1 percentage points
below the H1 2022 margin (Q2 2023: 2.7 percentage points lower y/y) and represented 42.2%
compared to 45.3% for H1 2022. Gross profit per volume unit was 4.3% higher (Q2 2023: 4.7%
higher) than in 2022.
Q2
2023
Q2
2022
%
change
H1
2023
H1
2022
%
change
FY
2022
Sales and distribution expenses (mDKK) 847 841 1 1,555 1,455 7 2,926
Administrative expenses (mDKK) 181 133 36 330 261 26 427
Sales and distribution expenses for H1 2023 were DKK 100 million higher than the same period
in 2022 and amounted to DKK 1,555 million compared to DKK 1,455 million for H1 2022.
Administrative expenses for H1 2023 showed a DKK 69 million increase compared to the same
period in 2022 and amounted to DKK 330 million compared to DKK 261 million for H1 2022. Advi-
sory costs and other project costs related to acquisitions are included in administrative expenses.
Q2
2023
Q2
2022
%
change
H1
2023
H1
2022
%
change
FY
2022
EBITDA (mDKK) 674 623 8 976 940 4 1,997
EBIT (mDKK) 536 511 5 710 720 -1 1,516
Income after tax from investments (mDKK) 4 355 -99 4 351 -99 362
Net financial expenses (mDKK) -60 -15 -300 -111 -25 -344 -93
Earnings before interest, tax, depreciation and amortization (EBITDA) for H1 2023 showed a DKK
36 million increase and amounted to DKK 976 million compared to DKK 940 million for H1 2022.
In Q2 2023, EBITDA increased by DKK 51 million compared to the same period in 2022. EBIT
for H1 2023 amounted to DKK 710 million, which is DKK 10 million lower than the same period in
2022, caused by negative scale effect from lower-than-expected volumes in Italy and Africa,
weak currencies in Norway and Sweden and costs related to acquisitions.
The EBIT margin for H1 2023 was 11.6% and declined by 1.8 percentage points compared to
H1 2022 whereof around 1.1 percentage point was due to acquisitions including a signifant
impact from the weaker Norwegian Kroner. Income after tax from investments amount to DKK 4
million, in contrast to last year where the revaluation of our 25 % ownership in Hansa Borg led to
a tax-free profit of DKK 360 million. Net financial expenses for H1 2023 at DKK 111 million were
DKK 86 million higher than last year.
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 9
Q2
2023
Q2
2022
%
change
H1
2023
H1
2022
%
change
FY
2022
Profit before tax (mDKK) 480 851 -44 603 1,046 -42 1,785
Tax on profit (mDKK) -92 -79 -16 -117 -120 3 -294
Net profit (mDKK) 388 772 -50 486 926 -48 1,491
Earnings per share (DKK) 7.8 15.6 9.8 19.2 23.1
Earnings per share (DKK), adjusted* 7.8 8.5 9.8 11.7 23.1
* Earnings per share (EPS) is adjusted for gain on remeasurement of investments in associates (DKK 360 million) in 2022
Profit before tax for H1 2023 was DKK 443 million lower than the same period in 2022 and
amounted to DKK 603 million compared to DKK 1,046 million for H1 2022, which included a
technical revaluation of the shares in Hansa Borg.
Tax on profit for H1 2023 amounted to an expense of DKK 117 million. The tax has been calcu-
lated on the basis of an expected full-year tax rate of approx. 21% on the profit excluding result
after tax from investments in associates.
Net profit for H1 2023 amounted to DKK 486 million, which is DKK 440 million lower compared
to H1 2022. Earnings per share in H1 2023 decreased to DKK 9.8 per share compared to 19.2
for the same period in 2022, which was positively impacted by the revaluation of the shares
in Hansa Borg. Adjusting for this revaluation, earnings per share declined from 11.7 to 9.8 in H1
2023.
Balance sheet
The balance sheet amounted to DKK 14,957 million at the end of H1 2023, which is DKK 483
million above year end 2022.
H1
2023
H1
2022
%
change
H1
2023
FY
2022
%
change
Invested capital (mDKK) 10,410 9,815 6 10,410 10,451 0
Invested capital declined by DKK 41 million in the period from December 31, 2022, to June
30, 2023. ROIC excluding goodwill calculated on a running 12 months basis declined by 5
percentage points to 19% in H1 2023. ROIC including goodwill declined by 3 percentage points
to 12% in H1 2023.
H1
2023
H1
2022
Change
% points
H1
2023
FY
2022
Change
% points
ROIC incl. Goodwill (running 12 months) 12 15 -3 12 13 -1
ROIC excl. Goodwill (running 12 months) 19 24 -5 19 22 -3
Equity at the end of June 2023 amounted to DKK 4,825 million compared to DKK 5,158 million
at the end of 2022. The change in H1 2023 equity consists of positive comprehensive income of
DKK 376 million (H1 2022: 920 million), a share-based payment of DKK 11 million and a pay out
of dividend of DKK 720 million.
The equity ratio declined by 4 percentage points from December 31, 2022, to 32% on June 30,
2022.
H1
2023
H1
2022
%
change
H1
2023
FY
2022
%
change
Net interest-bearing debt (NIBD) 4,783 4,416 8 4,783 4,460 7
Net interest-bearing debt for H1 2023 showed a DKK 323 million increase (H1 2022: increase
of DKK 880 million) and amounted to DKK 4,783 million compared to DKK 4,460 million end of
2022. Increase in net interest-bearing debt comprised the positive free cash flow of DKK 545
million net plus DKK 5 million related to fixed asset divestments, less dividend payments of
DKK 720 million, DKK 1 million related to acquisitions and adjustment for DKK 152 million in net
leasing facilities. The net interest-bearing debt to EBITDA ratio (running 12 months basis) was
2.4 (H1 2022: 2.2).
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 10
Funds tied up in net working capital was DKK -711 million at the end of June 2023 (June 30,
2022: DKK -1,080 million) compared to DKK -770 million at the end of 2022. Funds tied up in
working capital thus decreased by DKK 59 million compared to end of 2022 (H1 2022: increase
of DKK 22 million). Funds tied up in inventories, trade receivables and trade payables showed
an increase of DKK 287 million compared to end of 2022 (H1 2022: increase of DKK 678 million)
mainly due to higher inventories and debtors, whereas funds tied up in the other elements of
working capital decreased by DKK 327 million affected by acquisitions (H1 2022: increase of
DKK 700 million).
Cash flow statement
The free cash flow for H1 2023 amounted to DKK 545 million, which was an increase of DKK
235 million compared to H1 2022. In H1 2023, cash flows from operating activities showed
a DKK 290 million increase compared to H1 2022 and net investments in property, plant and
equipment showed a DKK 35 million increase. Acquisitions showed a DKK 23 million decrease,
and dividend received from associates decreased by DKK 16 million.
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 11
Northern Europe
Q2
2023
Q2
2022
%
change
H1
2023
H1
2022
%
change
FY
2022
Volumes (mHL) 3.1 2.9 9 5.4 4.9 10 10.4
Organic volume growth (%) 3 -2 3 -2 -1
Net revenue (mDKK) 2,871 2,444 17 4,931 4,052 22 8,943
Organic net revenue growth (%) 11 11 13 12 10
EBIT (mDKK) 637 537 19 1,247
Organic EBIT growth (%) 19 -9 -6
EBIT margin (%) 12.9 13.3 13.9
Net revenue (mDKK) - selected
countries
Q2
2023
Q2
2022
%
change
H1
2023
H1
2022
%
change
FY
2022
Denmark 1,057 866 22 1,829 1,494 22 3,169
Finland 953 855 12 1,582 1,405 13 2,958
Norway 433 356 22 776 535 45 1,495
Sweden 122 112 9 231 188 23 379
Baltics 305 256 19 513 429 20 942
The Northern Europe segment represents our multi-beverage businesses in Finland, Norway,
Sweden, the Baltic countries, Denmark and Germany. Northern Europe accounted for 81%
of Group volumes and 80% of Group net revenue in H1 2023 (H1 2022: 75% of both Group
volumes and net revenue).
In Q2 2023, volumes increased by 9% in Northern Europe compared to the same period in
2022, resulting in a 10% increase in H1 2023. Adjusting for acquisitions, the organic volume
growth was 3% for both Q2 2023 and H1 2023. The significant price increases implemented
in the Baltics has resulted in volume declines impacting the Northern Europe organic volume
growth negatively by almost 4 percentage points. Net revenue and profit contribution increased
in the Baltics despite of the volume decline.
Net revenue increased by 17% in the quarter and net revenue for H1 2023 was 22% above 2022.
The organic net revenue growth of 11% in the quarter and 13% in the first half of 2023 includes
a significant negative impact from weaker currencies in Norway and Sweden. Adjusting for this,
organic net revenue growth was 14% in the quarter and 16% in the first half of the year.
The strong top line momentum is a combination of the price increases implemented over the
past year, despite the extensions of partnerships with PepsiCo and Diageo, which initially are
dilutive to the average net revenue per hectolitre.
EBIT for H1 2023 increase by DKK 100 million to DKK 637 million. This includes a negative
currency impact of around DKK 30 million from the weaker Norwegian and Swedish Kroner.
Adjusting for this, the organic EBIT growth was 24% in H1 2023. The earnings growth is a result
of higher sales prices, solid volume growth and extended partnership agreements.
The reported EBIT margin in H1 2023 decreased by 40bp y/y to 12.9%, whereas the organic
EBIT margin declined by 1.3 percentage points to 14.1% in H1 2023.
The development in Denmark and Germany was positively impacted by the expanded partner-
ship with PepsiCo to also include the border business between the two countries. Net revenue
increased by 22% in H1 2023 including a small contribution from Nørrebro Bryghus, which was
acquired at the end of 2022. The strong net revenue growth was broadly based with significant
volume increases for CSD, energy drinks and water in combination with implemented price
increases across all categories.
Developments in individual market segments
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 12
In the first half of the year, consumer dynamics remained relatively strong as both On-Trade
and Off-Trade had higher sales than in H1 2022. The convenience channel also continued at a
solid level as the unemployment rate continues to be very low in Denmark.
Royal Unibrew was for the fourth year in a row voted “best supplier” by Danish grocery retail
at head office level, acknowledging the high quality and service level we provide toward our
customers.
In the first half of 2023, we launched two soft drinks with orange flavor in the name of our
iconic Danish soft drink brand Faxe Kondi – one containing sugar (regular) and one sugar free.
The launch has been very successful, and we have expanded our market share significantly
within the orange segment; at the same time, the launch has expanded the orange segment’s
share of the total market. As part of the launch, we focused on the sugar free variant, resulting
in significantly higher market share than our regular variant as well as competitors’ sugar free
variants.
In Finland, net revenue has increased organically by 13% in the first half of the year as a result
of implemented price increases during the past year but also due to solid volume growth. The
second quarter started on a soft note with poor weather, an aggressive campaigning envi-
ronment and implementation of price increases. During May and June, activity picked up due
to more favorable weather as well as the launch of Original Long Drink Pineapple. We gained
market shares in the total market, especially in the non-alcoholic categories, but RTD and wine
and spirits also performed very well.
The consumer remains relatively strong in Finland with continued growth in Off- and On-Trade.
Unemployment has started to increase slightly, although from very low levels.
In H1 2023, Hartwall launched a new version of its iconic Original Long Drink. It is a product
launch in the name of the well-known Original Long Drink brand, with gin and pineapple instead
of gin and grapefruit as the original version. During the summer, it has proved to be a very
successful launch by expanding the market for RTD.
The Baltic countries also experienced cold weather in the beginning of the quarter that turned
into warmer and more sunny weather later in the quarter. Price increases have been success-
fully implemented, and we are gaining overall market share driven by CSD and energy drinks.
A positive product mix from higher share of craft and premium beer has also supported profita-
bility.
In Norway and Sweden, the integration of Solera and Hansa Borg is progressing well. Solera
Sweden is now up and running on Group IT platform and fully integrated. In Norway, we have
launched Cult in the energy drinks segment, and it is off to a satisfactory start, although it is
still early days. The Cider/RTD category performed well and was supported by good weather in
May and June. Both countries are significantly impacted by the weaker currencies. Further price
increases are needed to off-set the impact.
Western Europe
Q2
2023
Q2
2022
%
change
H1
2023
H1
2022
%
change
FY
2022
Volumes (mHL) 0.4 0.6 -29 0.7 0.9 -22 1.6
Organic volume growth (%) -29 42 -22 35 15
Net revenue (mDKK) 387 456 -15 655 762 -14 1,353
Organic net revenue growth (%) -15 26 -14 28 10
EBIT (mDKK) 65 129 -50 157
Organic EBIT growth (%) -50 -16 -46
EBIT margin (%) 9.9 16.9 11.6
Western Europe, representing our multi-niche businesses in Italy and France, accounted for
11% of both Group volumes and net revenue in H1 2023 (H1 2022: 14% of both volumes and net
revenue).
In Q2 2023, volumes declined by 29% in Western Europe compared to the same period in
2022, resulting in a 22% decline in H1 2023 as the division was up against very tough compa-
rable growth last year from stocking in the wholesale beer On-Trade channel and as weather
in Italy was poor. Net revenue declined by 15% in the quarter, meaning that net revenue for H1
2023 was 14% below 2022.
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 13
The first half of 2023 was negatively impacted by continued de-stocking in the Italian whole-
sale beer channel. A situation that improved during the second quarter of the year and normal-
ized toward the end of the quarter but had a significant impact on both volumes and profita-
bility.
The reported EBIT margin in H1 2023 declined by 7 percentage points y/y to 9.9%. The profita-
bility improved during the second quarter as the Italian wholesale beer channel improved.
EBIT for H1 2023 declined by DKK 64 million to DKK 65 million. The weaker profitability is due to
de-stocking in the Italian wholesale On-Trade beer channel, lower than expected volumes and
poor weather in Italy.
Sell-out for both CSD and beer in Italy continued to outperform market growth within their
respective segments, whereas poor weather in May delayed the start of the high season. The
delayed high season also prolonged the normalization of the On-Trade wholesale channel in the
beer market. We are now seeing normal order patterns and order sizes and the inventory level in
the channel remains low.
Our energy drink business in France continues to grow as a result of continuous improvement
of in-store execution, distribution and brand equity building. The Lorina lemonade business
declined in H1 2023 as volumes were hit by unnormal price increases taken by the trade on top
of our price increases. Sales-out numbers did improve in June and indicated an improvement of
the situation.
International
Q2
2023
Q2
2022
%
change
H1
2023
H1
2022
%
change
FY
2022
Volumes (mHL) 0.3 0.4 -13 0.5 0.7 -21 1.4
Organic volume growth (%) -18 11 -25 2 6
Net revenue (mDKK) 336 310 8 561 560 0 1,191
Organic net revenue growth (%) -9 29 -15 15 17
EBIT (mDKK) 25 67 -63 128
Organic EBIT growth (%) -51 -29 -32
EBIT margin (%) 4.5 12.0 10.7
The International segment comprises the export and license business in markets outside
Denmark, Finland, Norway, Sweden, Italy, France and the Baltic countries. In H1 2023, Interna-
tional accounted for 8% of Group volumes and 9% of Group net revenue (H1 2022: 10% of both
volumes and net revenue).
Volumes for H1 2023 showed a 21% decline, whereas net revenue was flat. Adjusted for the
impact from the acquisition of Amsterdam Brewery, volumes declined organically by 25% and
net revenue by 15%. Development was less negative in Q2 2023 compared to the year before
with an organic volume decline of 18% (reported: -13%) and an organic net revenue decline of
9% (reported: +8%).
The African beer market was challenged through most of the quarter by political unrest and
weak macroeconomic development, but most markets stabilized toward the end of the second
quarter. In UK, our Nohrlund contract with one of the world’s leading live entertainment compa-
nies is promising in the light of a good start of the festival season, and our Supermalt brand is
developing satisfactory.
EBIT for H1 2023 amounted to DKK 25 million, which was DKK 42 million below the H1 2022
result. The margin decline from 12.0% to 4.5% in H1 2023 was driven by implementation and
start-up investments for the festival contract, costs related to the acquisition of Amsterdam
Brewery and negative scale effects. The organic EBIT margin declined by 5.2 percentage points
in H1 2023 and by 2.7 percentage points in Q2 2023.
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 14
The Board of Directors and the Executive Management have today considered and approved
the Interim Report of Royal Unibrew A/S.
The Interim Report, which has not been audited or reviewed by the Company’s independent
auditors, was prepared in accordance with IAS 34 “Interim Financial Reporting” as adopted by
the EU and additional Danish disclosure requirements for listed companies.
In our opinion, the interim financial statements give a true and fair view of the financial position
of the Group at June 30, as well as of the results of the Group operations and cash flows for the
period January 1 – June 30, 2023.
In our opinion, Management’s review contains a fair review of the development in the activi-
ties and financial circumstances of the Group, of results of operations for the period and of the
overall financial position of the Group, together with a description of the significant risks and
uncertainties facing the Group.
Faxe, August 22, 2023
Executive Management
Lars Jensen Lars Vestergaard
President & CEO CFO
Board of Directors
Peter Ruzicka Jais Valeur
Chair Deputy Chair
Martin Alsø Torben Carlsen
Michael Nielsen Heidi Kleinbach-Sauter
Claus Kærgaard Christian Sagild
Catharina Stackelberg-Hammarén
Management's statement
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 15
For further information on this announcement:
Investor Relations, Jonas Guldborg Hansen, tel. +45 20 10 12 45
Media Relations, Michelle Nørrelykke Hindkjær, +45 25 64 34 31
We invite investors and analysts to follow Royal Unibrew’s presentation of the Interim Report on
Wednesday, August 23, 2023, at 9.00 am CEST by webcast:
Telephone conference
Access details for participants:
https://register.vevent.com/register/BI7a512e2d6c284eec948e0345f1be3696
Webcast player URL
https://edge.media-server.com/mmc/p/9vasz7yb
Financial calendar for 2023
November 8, 2023 Trading statement for the period January 1 - September 30, 2023
Forward-looking statements
This Interim Report contains forward-looking statements, including statements
about the Group’s sales, revenue, earnings, spending, margins, cash flows, inven-
tories, 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, esti-
mates, 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, devel-
opment 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, pandemic, 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.
ROYAL UNIBREW Interim report for January 1 - June 30, 2023 16
Consolidated income statement
mDKK
Q2
2023
Q2
2022
H1
2023
H1
2022
FY
2022
Net revenue 3,595 3,211 6,147 5,373 11,487
Production costs -2,031 -1,726 -3,552 -2,937 -6,618
Gross profit 1,564 1,485 2,595 2,436 4,869
Sales and distribution expenses -847 -841 -1,555 -1,455 -2,926
Administrative expenses -181 -133 -330 -261 -427
EBIT 536 511 710 720 1,516
Income after tax from investments in associates 4 -5 4 -9 2
Gain on remeasurements of investments in associates 0 360 0 360 360
Financial income 8 -2 24 1 10
Financial expenses -68 -13 -135 -26 -103
Profit before tax 480 851 603 1,046 1,785
Tax on the profit for the period -92 -79 -117 -120 -294
Net profit for the period 388 772 486 926 1,491
Profit for the period is attributable to:
Equity holders of Royal Unibrew A/S 388 772 486 927 1,492
Non-controlling interests 0 0 0 -1 -1
Net profit for the period 388 772 486 926 1,491
Earnings per share (DKK) 7.8 15.6 9.8 19.2 30.5
Earnings per share (EPS), adjusted* 7.8 8.5 9.8 11.7 23.1
Diluted earnings per share (DKK) 7.8 15.6 9.8 19.2 30.5
Diluted earnings per share (DKK) ,adjusted* 7.8 8.5 9.8 11.7 23.1
mDKK
Q2
2023
Q2
2022
H1
2023
H1
2022
FY
2022
Net profit for the period 388 772 486 926 1,491
Other comprehensive income
Items that may be reclassified to the income statement:
Exchange adjustments of foreign group enterprises -31 9 -112 12 6
Value adjustment of hedging instruments -11 -66 -2 -19 22
Tax on value adjustment of hedging instruments 6 1 4 1 -3
Tot a l -36 -56 -110 -6 25
Items that may not be reclassified to the income statement:
Actuarial gain on pension schemes 0 0 0 0 3
Tot a l 0 0 0 0 3
Other comprehensive income after tax -36 -56 -110 -6 28
Total comprehensive income 352 716 376 920 1,519
Comprehensive income for the period is attributable to:
Equity holders of Royal Unibrew A/S 352 716 376 921 1,520
Non-controlling interests 0 -1 -1
Net profit for the period 352 716 376 920 1,519
17ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Consolidated balance sheet
Assets
mDKK
June 30,
2023
June 30,
2022
December 31,
2022
NON-CURRENT ASSETS
Intangible assets 7,287 7,449 7,558
Property, plant and equipment 3,852 3,532 3,680
Investments in associates 96 93 99
Other non-current investments 73 69 79
Non-current assets 11,308 11,143 11,416
CURRENT ASSETS
Inventories 1,391 1,187 1,213
Receivables 1,959 2,018 1,500
Prepayments 175 117 131
Cash and cash equivalents 124 186 214
Current assets 3,649 3,508 3,058
Assets 14,957 14,651 14,474
Liabilities and Equity
mDKK
June 30,
2023
June 30,
2022
December 31,
2022
EQUITY
Share capital 100 100 100
Other reserves 1,453 1,534 1,567
Retained earnings 3,272 2,940 2,763
Proposed dividend 0 0 728
Equity contributable to equity holders
of Royal Unibrew A/S 4,825 4,574 5,158
Non-controlling interests 0 0 0
Equity 4,825 4,574 5,158
LIABILITIES
Non-current liabilities
Deferred tax 971 987 1,011
Mortgage debt 1,008 985 1,009
Credit institutions 3,161 1,739 2,677
Other payables 9 28 9
Non-current liabilities 5,149 3,739 4,706
Current liabilities
Mortgage debt 2 30 2
Credit institutions 736 1,848 986
Trade payables 2,284 2,280 1,934
Provisions 0 10 11
Corporation tax 9 61 8
Other payables 1,952 2,109 1,669
Current liabilities 4,983 6,338 4,610
Liabilities 10,132 10,077 9,316
Liabilities and equity 14,957 14,651 14,474
18ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Consolidated cash flow statement
for January 1 - June 30
mDKK
Q2
2023
Q2
2022
H1
2023
H1
2022
FY
2022
Net profit for the period 388 771 486 926 1,491
Adjustments for non-cash operating items 296 -147 501 17 506
Change in working capital 537 263 106 -247 -480
Net paid financial expenses and income -58 -17 -110 -26 -76
Financial expenses related to leasing 0 0 0 0 -2
Corporation tax paid -30 -26 -131 -108 -304
Cash flows from operating activities 1,133 845 852 562 1,135
Dividend received from associates 0 3 11 27 27
Sale of property, plant and equipment 0 2 1 3 6
Purchase of property, plant and equipment -158 -152 -267 -234 -475
Acquisition of enterprises -1 -24 -1 -24 -275
Purchase/sale of intangible and fixed assets
and other investments -2 -17 5 -18 -27
Cash flows from investing activities -161 -188 -251 -246 -744
Proceeds from borrowings 171 1 545 472 2,450
Repayment of borrowings -401 352 -457 351 -1,594
Repayment on leasing facilities -26 -29 -52 -48 -116
Dividend paid to shareholders -720 -692 -720 -692 -692
Acquisition of shares for treasury 0 -200 0 -300 -300
Cash flows from financing activities -976 -568 -684 -218 -252
mDKK
Q2
2023
Q2
2022
H1
2023
H1
2022
FY
2022
Change in cash and cash equivalents -4 89 -83 98 139
Cash and cash equivalents at beginning 129 97 214 86 86
Exchange adjustment -1 0 -7 2 -11
Cash and cash equivalents end of period 124 186 124 186 214
Free cash flow
Net cash from operating activities 1,133 845 852 562 1,135
Net cash used in investing activities -158 -147 -255 -204 -442
Payment of lease liabilities -26 -29 -52 -48 -116
Free cash flow 949 669 545 310 577
19ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Consolidated statement of changes in equity
for January 1 - June 30
mDKK
Share
capital
Share
premium
account
Translation
reserve
Hedging
reserve
Total other
reserves
Retained
earnings
Proposed
dividend for
the year
Parent
Company
share of equity
Minority
share Tot a l
Equity at December 31, 2022 100 1,573 -41 35 1,567 2,763 728 5,158 0 5,158
Changes in equity in 2023
Net profit for the year 0 486 486 486
Other comprehensive income -112 -2 -114 0 -114 -114
Tax on other comprehensive income 0 4 4 4
Total comprehensive income 0 0 -112 -2 -114 490 0 376 0 376
Dividends paid to shareholders 0 -720 -720 -720
Dividend on treasury shares 0 8 -8 0 0
Share-based payments 0 11 11 11
Total shareholders 0 0 0 0 0 19 -728 -709 0 -709
Total changes in equity
January 1 - June 30, 2023 0 0 -112 -2 -114 509 -728 -333 0 -333
Equity at June 30, 2023 100 1,573 -153 33 1,453 3,272 0 4,825 0 4,825
20ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Consolidated statement of changes in equity
for January 1 - June 30
mDKK
Share
capital
Share
premium
account
Translation
reserve
Hedging
reserve
Total other
reserves
Retained
earnings
Proposed
dividend for
the year
Parent
Company
share of equity
Minority
share Tot a l
Equity at December 31, 2021 98 753 -47 13 719 1,805 708 3,330 12 3,342
Changes in equity in 2022
Net profit for the year 0 927 927 -1 926
Other comprehensive income 12 -19 -7 -7 -7
Tax on other comprehensive income 0 1 1 1
Total comprehensive income 0 0 12 -19 -7 928 0 921 -1 920
Capital increase 2 1,063 1,063 1,065 1,065
Capital increase adjustment to fair value -241 -241 -241 -241
Minority's share of sold business 0 21 21 -11 10
Dividends paid to shareholders 0 -692 -692 -692
Dividend on treasury shares 0 16 -16 0 0
Acquisition of shares for treasury 0 -300 -300 -300
Transfer of treasury shares as acquisition of
enterprises 0 467 467 467
Share-based payments 0 3 3 3
Total shareholders 2 822 0 0 822 207 -708 323 -11 312
Total changes in equity
January 1 - June 30, 2022 2 822 12 -19 815 1,135 -708 1,244 -12 1,232
Equity at June 30, 2022 100 1,575 -35 -6 1,534 2,940 0 4,574 0 4,574
21ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Notes to the Interim report
Note 1 Significant accounting policies; accounting estimates and judgements
The Interim report is presented in accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU
and additional Danish disclosure requirements for interim financial reporting of listed companies.
The Annual report for 2022 provides the total description of accounting policies significant to the Financial
statements.
Accounting estimates and judgements
The preparation of interim financial reporting requires that management make accounting estimates and
judgements which affect the application of accounting policies and recognised assets, liabilities, income and
expenses. Actual results may deviate from these estimates.
Note 2 Assets and derivative financial instruments measured at fair value
mDKK
June 30,
2023
June 30,
2022
December 31,
2022
Derivative financial instruments 34 -6 45
Derivative financial instruments are classified as level-2 instruments in the IFRS fair value hierarchy. The deter-
mined fair value of derivative financial instruments is based on observable market data such as yield curves or
forward rates.
The fair value of the total debt is assessed to correspond to carrying amount.
22ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Note 3 Segment reporting
The Group’s results break down as follows on segments:
H1 2023
mDKK
Northern
Europe
Western
Europe
Inter-
national
Un-
allocated Tot a l
Net revenue 4,931 655 561 6,147
Amortization and depreciation 228 25 13 0 266
Impairment 0 0 0 0 0
Earnings before interest and tax (EBIT) 637 65 25 -17 710
Sales (million hectoliters) 5.4 0.7 0.5 6.6
H1 2022
mDKK
Northern
Europe
Western
Europe
Inter-
national
Un-
allocated Tot a l
Net revenue 4,052 762 560 0 5,373
Amortization and depreciation 180 28 15 -3 220
Impairment 0 0 0 0 0
Earnings before interest and tax (EBIT) 537 129 67 -13 720
Sales (million hectoliters) 4.9 0.9 0.7 6.5
Notes to the Interim report
FY 2022
mDKK
Northern
Europe
Western
Europe
Inter-
national
Un-
allocated Tot a l
Net revenue 8,943 1,353 1,191 0 11,487
Amortization and depreciation 394 52 34 1 481
Impairment 0 0 0 0 0
Earnings before interest and tax (EBIT) 1,247 157 128 -16 1,516
Sales (million hectoliters) 10.4 1.6 1.4 13.4
Effective January 1, 2022, segments have changed from Western Europe, Baltic Sea and International to
Northern Europe, Western Europe and International. This is consistent with the Group’s internal management
and reporting structure.
Segment assets, segment liabilities and related disclosures are not provided to management on a regular basis
and are therefore not disclosed.
23ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Note 4 Cash flow statement
mDKK
H1
2023
H1
2022
FY
2022
Adjustments for non-cash operating items
Financial income -24 -1 -10
Financial expenses 135 26 103
Amortisation, depreciation and impairment of
intangible assets and property, plant and equipment 267 221 487
Tax on the profit for the period 117 120 294
Income from investments in associates -4 9 -2
Gain on remeasurements of investments in associates 0 -360 -360
Profit and loss from sale of property, plant and equipment -1 -1 -6
Share-based payments and remuneration 11 3 0
Tot a l 501 17 506
Note 3 Segment reporting (continued)
Geographically, revenue and non-current assets break down as follows:
H1
2023
H1
2022
FY
2022
H1
2023
H1
2022
FY
2022
mDKK
Net
revenue
Net
revenue
Net
revenue
Non-
current
assets
Non-
current
assets
Non-
current
assets
Denmark 1,829 1,494 3,169 2,061 1,938 1,930
Finland 1,582 1,405 2,958 3,486 3,368 3,447
Norway 776 535 1,495 2,015 1,350 2,271
Other countries 1,960 1,939 3,865 3 ,746 4,487 3,768
Tot a l 6,147 5,373 11,487 11,308 11,143 11,416
The geographic breakdown is based on the geographic location of the Group's external customers and
comprises countries that individually account for more than 10% of the Group's net revenue as well as the
country in which the Group is headquartered.
No single customer accounts for revenue in excess of 10% of the Group's net revenue.
Revenue by category
mDKK
H1
2023
H1
2022
FY
2022
Beer revenue 1,870 1,698 3,557
Other beverages 4,071 3,567 7,805
Other revenue 206 108 125
Tot a l 6,147 5,373 11,487
Notes to the Interim report
24ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Note 5 Acquisition of subsidiaries
Acquisition after the reporting period
On July 3, 2023, Royal Unibrew signed an agreement to acquire 100% of Vrumona from Heineken. Closing of
the transaction is expected to happen in either September or October this year. The acquisition is based on an
enterprise value of EUR 300 million on a debt free basis. Vrumona's net revenue was in 2022 EUR 200 million
whereas normalized EBITDA in 2022 was EUR 25 million.
On July 21, 2023, Royal Unibrew announced the signing of an agreement to acquire a production facility in San
Giorgio di Nogaro, Italy, from Bierra Castello. Royal Unibrew will take full ownership of the assets later this year
once certain transaction-related processes have been fulfilled.
Acquisitions in 2022
Acquisition of full ownership of Hansa Borg Bryggerier
On January 7, 2022, Royal Unibrew A/S entered into an agreement to acquire the remaining 75% of Hansa Borg
Bryggerier, of which Royal Unibrew already had 25% ownership, resulting in a 100% ownership of the company.
The acquisition was completed on May 25, 2022. Hansa Borg Bryggerier is Norway’s second largest brewery
and beverage company with four breweries and one bottling plant throughout the country and products
ranging from beers to ciders, carbonated soft drinks, water and wines for the Norwegian market.
Together with Solera Beverage Group, which Royal Unibrew acquired in September 2021, Hansa Borg Bryggerier
is strategically very important for our Norwegian business as it in combination with Solera will create a strong
player with a very strong beverage portfolio in Norway and thereby strengthen our multi-beverage presence.
The transaction is based on an enterprise value (at signing) of NOK 3.3 billion. With the share price at closing
(587) the final enterprise value for 100% of the company was NOK 2.6 billion (DKK 1.9 billion). Hansa Borg Bryg-
gerier was expected to generate normalized full-year revenue in 2022 of around NOK 1.4 billion with a normal-
ized EBITDA of around NOK 210 million, resulting in an acquisition multiple (EV/EBITDA) of 12.4 times at closing.
The already owned 25% of Hansa Borg Bryggerier was revalued in connection with the transaction, resulting in a
non-cash tax-free remeasurement of DKK 360 million.
According to the agreement, 10% of the payment, corresponding to NOK 224 million (DKK 162 million), was paid
in cash, while the remaining 90% of the payment was paid in Royal Unibrew shares (2,194,257 shares).
The acquisition price exceeded the fair value of the acquired assets, liabilities and contingent liabilities. The
difference is the expected value of synergies and future growth opportunities. Synergies are not recognized
separately from goodwill. Goodwill is not eligible for tax depreciation.
Royal Unibrew A/S has incurred transaction costs relating to the acquisitions of approx. DKK 5 million for finan-
cial and legal advisors in connection with the realization of the transaction. The costs are recognized as admin-
istrative expenses and split equally in 2021 and 2022.
The acquisition has been included in the consolidated financial statements of Royal Unibrew as of the date of
acquisition. Royal Unibrew has made the following calculation of the fair value of the acquired net assets and of
goodwill at the time of the acquisition:
mDKK
Trademarks 698
Distribution rights 7
Customer relations 27
Property, plant and equipment 629
Inventories 143
Receivables 238
Prepayments 29
Deferred tax -244
Debt including leasing -34
Trade payables -101
Other payables -499
Acquired net assets 893
Goodwill 903
Estimated fair value of the business 1,796
Acquired cash at bank and in hand 138
Total acquisition price 1,934
Fair value of existing 25% shareholding -483
Total acquisition price 1,451
Transfer of:
Issue of new shares 821
Treasury shares 467
Cash 163
Total consideration, 75% shareholding 1,451
Number of employees 296
The receivables acquired include trade receivables of a fair value of DKK 180 million corresponding to the gross
amount receivable according to contract.
Notes to the Interim report
25ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Note 5 Acquisition of subsidiaries (continued)
Acquisition of Amsterdam Brewery Co. Ltd.
On July 15, 2022, Royal Unibrew entered into an agreement to acquire 100% of the Toronto-based company
Amsterdam Brewery Co. Ltd.
The Canadian based company is a large-scale craft brewery with a potential to increase both capabilities and
capacities during the coming years. Moreover, the acquisition will support future growth of Royal Unibrew in the
Americas region by adding capacity in Canada, which is also close to our US business. Over time we, expect to
serve most of Canada and partly US from Amsterdam Brewery Co. Ltd., which will reduce transportation costs
and our CO
2
footprint.
The acquisition is based on an enterprise value of DKK 241 million on a debt free basis. The company has
normalized revenue of around CAD 34 million (around DKK 200 million) and a normalized EBITDA of around CAD
5 million (around DKK 28 million).
Royal Unibrew A/S has incurred transaction costs relating to the acquisitions of approximately DKK 2 million for
financial and legal advisors in connection with the realization of the transaction. The costs are recognized as
administrative expenses in 2022.
The acquisition has been included in the consolidated financial statements of Royal Unibrew as of the date of
acquisition.
mDKK
Intangibles 103
Property, plant and equipment 83
Inventories 22
Receivables 8
Prepayments 8
Deferred tax -25
Debt including leasing -21
Trade payables -11
Other payables -24
Acquired net assets 143
Goodwill 98
Estimated fair value of the businesses 241
Acquired cash at bank and in hand 0
Cash consideration 241
Number of employees 247
Baldersbrønde Bryggeri A/S (Nørrebro Bryghus)
On December 30, 2022, Royal Unibrew acquired 100% of the shares in Baldersbrønde Bryggeri A/S (Nørrebro
Bryghus) in Denmark.
With the acquisition, Royal Unibrew take over an exciting range of organic craft beers, adding to Royal Unibrew's
portfolio of craft beers strengthening Royal Unibrew's position in Copenhagen.
Group impact
If the acquisitions had occurred on January 1, 2022, consolidated pro-forma revenue and EBITDA for the period
ended December 31, 2022, of the combined Group would have been approximately DKK 12,111 million (2021
DKK 9,756 million) and DKK 2,069 million (2021 DKK 2,141 million), respectively.
Notes to the Interim report
26ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Financial highlights and ratios
per quarter
Q1
2023
Q1
2022
Q2
2023
Q2
2022
Volumes (mHL) 2.8 2.7 3.9 3.8
Income statement (mDKK)
Net revenue 2,552 2,162 3,595 3,211
EBITDA 302 317 674 623
EBITDA margin (%) 11.8 14.7 18.7 19.4
Earnings before interest and tax (EBIT) 174 209 536 511
EBIT margin (%) 6.8 9.7 14.9 15.9
Result after tax from investments 0 -4 4 355
Other financials, net -51 -10 -60 -15
Profit before tax 123 195 480 851
Net profit for the period 98 154 388 772
Balance sheet (mDKK)
Non-current assets 11,220 8,780 11,308 11,143
Total assets 14,523 11,335 14,957 14,651
Equity 5,182 3,442 4,825 4,574
Net interest-bearing debt 4,887 4,012 4,783 4,416
Net working capital -214 -566 -711 -1,080
Invested capital 10,900 8,064 10,410 9,815
Cash flows (mDKK)
From operating activities -281 -283 1,133 845
From investing activities -97 -57 -158 -147
Payment of lease liabilities -26 -19 -26 -29
Free cash flow* -404 -359 949 669
Q1
2023
Q1
2022
Q2
2023
Q2
2022
Financial ratios (%)
Free cash flow as a percentage of net revenue -16 -17 26 21
Cash conversion -412 -233 245 87
Net interest-bearing debt/EBITDA* 2.5 1.3 2.4 2.2
Equity ratio 36 30 32 31
* Running 12 months
Ratios comprised by the “Recommendations and Financial Ratios” issued by the Danish Society's Commitee for
accounting standards have been calculated according to the recommendations.
27ROYAL UNIBREW Interim report for January 1 - June 30, 2023
Financial highlights and ratios
for January 1 - June 30, 2019-2023
2023
2022
2021
2020
2019
Volumes (mHL) 6.6 6.5 6.0 5.3 5.5
Income statement (mDKK)
Net revenue 6,147 5,373 3,905 3,457 3,971
EBITDA 976 940 927 833 879
EBITDA margin (%) 15.9 17.5 23.7 24.1 22.1
Earnings before interest and tax (EBIT) 710 720 750 663 710
EBIT margin (%) 11.6 13.4 19.2 19.2 17.9
Income after tax from
investments in associates 4 351 15 4 9
Other financials, net -111 -25 -16 -19 -19
Profit before tax 603 1,046 749 648 700
Net profit for the period 486 926 594 505 541
Balance sheet (mDKK)
Non-current assets 11,308 11,143 7,123 6 ,974 7,099
Total assets 14,957 14,651 9,101 8,837 8,907
Equity 4,825 4,574 2,889 3,545 2,663
Net interest-bearing debt 4,783 4,416 2,618 2,114 3,000
Net working capital -711 -1,080 -990 -650 -749
Invested capital 10,410 9,815 5,908 6,076 6,068
Cash flows (mDKK)
From operating activities 852 562 885 702 715
From investing activities -307 -252 -202 -112 -102
Free cash flow 545 310 683 590 613
2023
2022
2021
2020
2019
Share ratios (DKK per share of DKK 2)
Earnings per share (EPS) 9.8 19.2 12.3 10.1 10.9
Earnings per share (EPS), adjusted* 9.8 11.7 12.3 10.1 10.9
Free cash flow per share 11.0 6.2 14.2 12.0 12.3
Year-end price per share 610.0 628.4 798.8 551.8 479.0
Financial ratios (%)
Free cash flow as a percentage
of net revenue 9 6 17 17 16
Cash conversion 112 33 115 117 113
Net interest-bearing debt/EBITDA** 2.4 2.2 1.3 1.2 1.7
Equity ratio 32 31 32 40 30
* Earnings per share (EPS) is ajusted for gain on remeasurement of investments in associates (DKK 360 million) in 2022
** Running 12 months
Ratios comprised by the “Recommendations and Financial Ratios” issued by the Danish Society's Commitee for
accounting standards have been calculated according to the recommendations.
28ROYAL UNIBREW Interim report for January 1 - June 30, 2023