Royal Unibrew reports higher interim first-half profit as margins improve

Investing.com -- Danish beverage maker Royal Unibrew reported higher profit and improved margins in its first-half 2026 interim report on Monday, as growth in its own brands and a focus on more profitable sales helped offset inflationary pressures and the exit from lower-margin activities.

Second-quarter net revenue fell 0.3% to 4.43 billion Danish crowns ($682 million), from 4.44 billion crowns a year earlier, while EBITDA rose 3.5% to 949 million crowns from 917 million crowns. EBIT increased 1.8% to 753 million crowns from 740 million crowns, while net profit rose 1.3% to 537 million crowns from 530 million crowns. Diluted earnings per share increased to 11.0 crowns from 10.6 crowns.

For the first half, net revenue rose 1.2% year over year to 7.74 billion crowns from 7.64 billion crowns. Underlying revenue growth was about 4%, excluding the planned exit from lower-margin activities. Gross profit increased 3.4% to 3.39 billion crowns, while EBITDA climbed 8.4% to 1.42 billion crowns from 1.31 billion crowns. EBIT rose 7.0% to 1.03 billion crowns from 959 million crowns, with the EBIT margin improving to 13.3% from 12.5%.

Net profit for the six months increased 7.6% to 707 million crowns from 657 million crowns, while diluted EPS rose 10.7% to 14.5 crowns from 13.1 crowns. Volume increased 1.8% to 9.0 million hectolitres from 8.8 million hectolitres.

Growth was led by the International segment and Italy, while Northern Europe also contributed. International net revenue rose 8.7% to 856 million crowns in the first half, with EBIT increasing 13.4% to 138 million crowns. Western Europe EBIT rose 19.6% to 260 million crowns, while Northern Europe EBIT increased to 646 million crowns from 632 million crowns.

Free cash flow was unchanged at 458 million crowns in the first half, while capital expenditure fell to 450 million crowns from 504 million crowns a year earlier.

Royal Unibrew reiterated its 2026 outlook, expecting organic EBIT growth of 6%-10%, corresponding to EBIT of 2.325 billion to 2.425 billion crowns, compared with 2.202 billion crowns in 2025. Full-year revenue is expected to be broadly in line with 2025 as beverage growth offsets the exit from lower-margin activities. The company also announced a new share buyback programme of up to 300 million crowns.

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