Financial developments in 2024 and prospects for 2025

The announcement of the company no. 2/2025 – 25 February 2025

Financial evolutions in 2024
2024 was marked by a high growth, a strong commercial execution and the increase of the free cash flow, despite the provocative conditions of the market and low consumers. Our multi-drink platform has offered a solid growth base, complemented by a strong commercial impulse especially on our niche/multi-niche markets.

	Q4	Q4	Change	Fy	Fy	Change
	2024	2023		2024	2023
Volume (millions HL)	4.2	4.0	5%	17.4	14.1	23%
Increased organic volume (%)	4	2		5	-3
Net income (MDKK)	3.574	3.444	4%	15.036	12.927	16%
Increasing organic net income (%)	3	6		6	4
EBITDA (MDKK)	594	581	2%	2.634	2.208	19%
Marja Ebitda (%)	16.6	16.9		17.5	17.1
EBIT (MDKK)	427	421	1%	1.968	1.638	20%
Increased organic EBIT (%)	2	29		15	7
Marja EBIT (%)	11.9	12.2		13.1	12.7
FREE Cash Flow (MDKK)	403	388	4%	1.434	1.143	25%
Nibd/Ebitda (times)				2.2	2.9

Net income increased by 16% to 15,036m DKK (2023: 12.927m DKK) while organic growth was 6%
EBIT increased by 20% at DKK 1.968m 2024 (2023: DKK 1.638m) while organic growth was 15%
Free cash flow raised to 1,434m DKK (2023: 1.143m)
Action earnings increased to 29.2 DKK (2023: 21.9 DKK per action), while action adjusted by action increased by 15% to 25.1 DKK
An extraordinary dividend of 14.5 DKK per action was paid in October 2024, equivalent to DKK 726m related to financial year 2023
The usual dividend proposed for 2024 is DKK 15.0 per action equivalent to DKK 753m
We launch a 250m DKK’s purchase program running by August 15, 2025

Lars Jensen, CEO comments on results and developments: “2024 has been a record year for Royal Unibrew, with strong group performance. In the last four years, we have doubled almost in size, becoming stronger and more resistant. The drink strategy, in Especially in the non-alcoholic sector with brands like Kondi, Jaffa, Royal Club and Lemonsoda, it was extremely Effective and drove the impulse until 2024 in most of the majority of our markets, despite a market characterized by a low confidence in consumers.

We have developed a robust growth model, and our extensive geographical imprint and platform have transformed our business, unlocking new local growth opportunities. Going further, we are focused on improving the operational efficiency, maximizing the yield on the invested capital and capitalizing on scale benefits. I am very pleased with the strong execution, the dedication and the hard work provided by the entire organization throughout the year ”.

Prospects of the year full 2025 (Interior information)

Perspectives for 2025

	Outlook 2025	Real 2024	Current 2023
Net income	5-7% growth	DKK 15.036m	DKK 12.927m
EBIT	Increase of 7-13%	DKK 1.968m	DKK 1.638m

The net increase of revenues is expected to fall within 5-7%, including the impact of structural changes equivalent to 2.5%(2024: 16%).
The EBIT increase is expected to fit in the range 7-13% (2024: 20%), equivalent to the total EBIT in the range of 2,100-2225m DKK (2024: DKK 1.968m), including the impact of structural changes. The new Belux and Finland businesses are expected to contribute marginally to EBIT in 2025.
The profitability will depend on consumers’ behavior and the related impact on the channel mixture as well as the high seasonal weather conditions

The entire prospects for 2025 are based on the following key assumptions:

Continuation of current provocative macroeconomic environment and low consumers
Stable demand on our markets and that Royal Unibrew will take market odds
Improved operational efficiency

Other financial assumptions for 2025:

Net financial expenses, except for losses or winnings, are expected to be around 250m DKK (2024: DKK 301m Net financial expenses adjusted for selling Polish actions)
The effective tax rate is expected to be around 22% (2024: 21.5%)
It is expected that Capex will be around 7% of net income (2024: 6%)

Financial Developments in the fourth quarter 2024

The fourth quarter was characterized by solid organic growth in both volumes and income, while EBIT increase was modest compared to a strong quarter of comparison last year, which was positively affected by the unique income related to selling to a building in Norway (DKK 30m) in addition, we have substantially invested more in marketing in the fourth quarter of this year (DKK 40M) and We have incurred costs on starting in Belgium (DKK 10m). The performance was particularly strong in Western and international Europe, while North Europe managed to protect profitability, despite the negative development of prices/mix.

Market development
The positive moment observed in the previous quarters continued in the fourth quarter, however, with a different level of activity and differences between markets during the quarter.
Nordics continue to be affected by the negative feeling of consumers. While our offer with multiple drinks offers stability, we are not immune to market developments, simply because of our already strong position and high market share. In Western and international Europe, we are still a relatively small player, which allows us to grow even when the market is soft.

Volume and income
The volumes increased by 5% to 4.2m Hl in Q4 2024 (Q4 2023: 4.0m Hl), which led to an increase of the organic volume of 4% in the quarter. In Western Europe, volumes have increased organically by 8% in the quarter, mainly due to market share earnings in all categories, while Northern European volumes increased by 5% organic, and internationally decreased by 14 %.

In the quarter IV 2024, net income increased by 4% to 3,574m DKK (Q4 2023: DKK 3.44m) corresponding to an organic growth of 3%. The weight of the net income of the acquisitions is diminished, because Vrumona is no longer considered income purchased from the fourth quarter 2024. The net income in northern Europe increased by 2% organic and registered a negative price/mix in the quarter caused by a less mix of countries favorable. In Western Europe, net revenues increased by 12% of organic point of view due to solid impulse in all categories and strong high performances in France and Italy. In international, net revenues were unchanged, despite the decrease of volumes due to the positive impact of prices/mix, the basic sales increase in International was raised by a single digit.

Earnings and profitability
The gross profit increased by 5% to 1,399 m in Q4 2024 (Q4 2023: DKK 1.338m) as a result of increasing income and improvement of efficiency, which leads to a slightly increasing gross profit margin of 39.1% (Q4 2023: 38.9%).

Sales and distribution expenses increased by 4% in Q4 2024 at DKK 816m (Q4 2024: 781m) in accordance with volume increase. Marketing costs increased with DKK 40m, while logistics costs decreased.
Administrative expenses decreased by 6% to DKK 156M (Q4 2023: 166m) as a result of improving efficiency and lower integration costs.
The result of EBIT increased by 1% at DKK 427m (Q4 2023: 421m), equivalent to an EBIT margin of 11.9% (Q4 2023: 12.2%). The result was negatively affected by DKK 10m related to starting in Belgium. Also, the result of EBIT in Q4 2023 was positively affected by a unique 30 m income from the transfer of a site in Norway. Excluding the unique income in 2023, the EBIT increase was DKK 36m, equivalent to 9%.

The net financial articles were erected to DKK -84M in Q4 2024 (Q4 2023: DKK -86M).
While the profit before tax was almost unchanged at DKK 343m (Q4 2023: DKK 342m), the net profit decreased to DKK 231M (Q4 2023: DKK 246M), as a result of the higher tax reported by DKK 111M (Q4 2023 : DKK 96m). Consequently, the action of action decreased by 6% to DKK 4.6 in Q4 2024 (Q4 2023: DKK 4.9).

Cash flow
The free cash flow in the Q4 has lifted at DKK 403m, which represents an increase in DKK 15m compared to the same period last year (Q4 2023: DKK 388m). The increase was determined by the changes in the net working capital by DKK 239m compensated by the profit tax paid for 64 m DKK and by an increased net cash level used in investment activities, including the payment of DKK Net 165M.

The annual report 2024 and related documents will be launched later today.

For further information, please contact:
Flemming Ole Nielsen (Head of Relations with Investors)
E-mail: [email protected]
Phone: +45 25 41 68 04

Telephone conference
Investors and analysts are invited to register and join a conference conference with the executive leadership of Royal Unibrew, Wednesday, February 26, 2025, at 10.00 at the following link:

Player WebCast
URL:

For further information, please contact:
Flemming Ole Nielsen (Head of Relations with Investors)
E-mail: [email protected]
Phone: +45 25 41 68 04

Prospective statements
This trading declaration contains prospective statements, including statements about sales, revenues, income, expenses, expenses, margins, cash flows, inventories, products, plans, strategies, objectives and guidance on the group’s future operating results. Prospective statements include, without limitation, any declaration that can predict, forecast, indicate or involve future results, performance or achievements and may contain the following words or phrases “believe, anticipate, wait, intend, plan, project, will be, will be Continue, probably, may, maybe, could ”or any variations of such words or other words with similar meanings. The uncertainties that could determine the real results of the group, the performance or results of the industry should differ significantly from the results expressed or involved in such prospective statements. Disclosure requirements for listed companies) to reflect real results, changes in hypotheses or changes to other factors that affect such prospective statements.

Some important risk factors that may have a direct influence on the real results of the group, but are not limited to: economic and political uncertainty (including interest rates and exchange rates), financial and regulatory developments, developing the group’s products, introduction of and demand for new products, changes in the competitive environment and the industry in which the group works, changes in consumers’ preferences, increasing industry strengthening, availability and the prices of raw materials and packaging materials, energy costs, production and distribution problems, information technology failures, unexpected violation or termination of contracts, reducing prices resulting from market -based prices, determining fair value in the opening balance of acquired entities, litigation, pandemic, environmental problems and other unforeseen factors.

In the future, new risk factors may occur, which the group cannot predict. Moreover, the group cannot evaluate the impact of each factor on the activity of the group or the extent to which any individual risk factor or the combination of factors can cause the results to differ significantly from those contained in any prospective statement. As a result, prospective statements should not be based on a prediction of real results.

Fond-RU-2-2025-UK-Financial Evolution in 2024 and prospects for 2025