Interim Report for H1 2012
8/28/2012 1:00 AM EST
Royal UNIBREW A/S
Half Year financial report
Interim Report for H1 2012
COMPANY ANNOUNCEMENT NO 42/2012 – 28 AUGUST 2012
Earnings improvement in H1 2012. Launch of extraordinary distribution programme
of approx DKK 500 million in 2012 with increase of share buy-back programme and
proposed extra dividend in 2013.
Continued earnings improvement was achieved in H1 2012 with earnings before
interest and tax (EBIT) of DKK 216 million – an increase of DKK 18 million from
last year. The earnings improvement reflects continued focus on further
development of market and segment positions, products and brands as well as
high efficiency. Sales volumes – measured in organic terms – decreased by 1% in
H1, whereas net revenue increased by 3% due to, among other things, price
increases in early 2012 to compensate partly for higher raw materials prices.
In spite of challenging market and weather conditions, both Eastern and Western
Europe saw minor organic revenue growth, and at the same time malt beverages
sales increased significantly as expected. The market shares for Royal
Unibrew’s branded products were generally maintained or increased. A free cash
flow of DKK 271 was achieved for H1, which is a DKK 72 million improvement on
last year. DKK 264 million (2011: DKK 174 million) has been distributed to the
shareholders through dividend distribution and share buy-backs. The Board of
Directors intends to make extraordinary distributions of approx DKK 500 million
over the coming years. The Board proposes an extraordinary increase of dividend
for 2012 by DKK 50 million, and it has been decided to increase the existing
share buy-back programme to DKK 210 million, including an extraordinary DKK 50
million for the period between the Annual General Meetings in 2012 and 2013.
”In the past months of 2012, we have focused on developing our commercial
activities and on defending and reinforcing our market positions. A few good
examples are the launch of Faxe Kondi Booster in the energy drink segment and
our new profile bottle for the Royal series. At the same time, we have
continued our efforts to achieve continuous efficiency improvement. We have
achieved both organic revenue growth and earnings improvement. We have also
seen a significant improvement of our cash flow. We are satisfied with the
developments in H1 – especially in light of the market volatility and declining
consumption of branded products in our European markets. We are pleased that
the sale of the first part of the brewery site in Aarhus can be realised in
September 2012 as planned, and the Board of Directors intends to make
extraordinary distributions of approx DKK 500 million over the coming years
from the sale of non-operational assets. We have achieved a good basis in H1
for meeting our overall expectations for 2012”, says Henrik Brandt, CEO.
HIGHLIGHTS
-- Royal Unibrew has generally maintained or increased its market shares for
branded beer as well as soft and malt beverages.
-- Net revenue decreased by 1.3% for Q2 and by 0.3% for H1 as compared to the
same period of 2011. Adjusted for the divestment of the Polish activities
in March 2011, net revenue increased by 2.6% for H1.
-- EBITDA amounted to DKK 192 million for Q2 2012 and to DKK 278 million for
H1 2012 – an increase of DKK 10 million.
-- Earnings before interest and tax (EBIT) amounted to DKK 160 million for Q2
2012 and to 216 million for H1 2012 – an increase of DKK 18 million. EBIT
margin for H1 2012 was 12.4% compared to 11.4% in 2011.
-- Profit before tax amounted to DKK 210 million for H1 compared to DKK 180
million in 2011.
-- Free cash flow amounted to DKK 271 million for H1 – a DKK 72 million
improvement on 2011.
-- Extraordinary distribution programme of approx DKK 500 million over the
coming years to be launched in 2012.
-- Share buy-back in the period between the Annual General Meetings in 2012
and 2013 to be increased to DKK 210 million, including an extraordinary DKK
50 million, and proposed extraordinary increase of dividend by DKK 50
million (DKK 4.75 per share) in 2013.
OUTLOOK
The outlook announced in March 2012 is maintained as follows:
-- Net revenue: DKK 3,375-3,500 million
-- EBITDA: DKK 580-630 million
-- EBIT: DKK 450-500 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 Tuesday, 28 August 2012, at 9 am by audio
cast at one of the following dial-in numbers:
Danish participants: +45 327 147 67
International participants: +44 207 509 5139
US participants: +1 718 354 1226
The presentation may also be followed at Royal Unibrew’s website
www.royalunibrew.com.
FINANCIAL HIGHLIGHTS AND KEY RATIOS
(H1 and Q2 unaudited)
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H1 H1 Q2 Q2 Full
2012 2011 2012 2011 year
2011
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Sales (thousand hectolitres) 2,711 2,898 1,551 1,618 5,668
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Income Statement (mDKK)
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Net revenue 1,733 1,739 980 994 3,431
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EBITDA 278 268 192 189 601
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Earnings before interest and tax 216 198 160 158 474
(EBIT)
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EBIT margin (%) 12.4 11.4 16.3 15.9 13.8
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Income after tax from investments in 11 4 11 10 14
associates
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Other financials, net (17) (22) (7) (9) (27)
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Profit before tax 210 180 164 159 461
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Profit for the period 156 129 122 116 351
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Royal Unibrew A/S' share of profit 155 128 121 115 348
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Balance Sheet (mDKK)
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Non-current assets 2,291 2,353 2,291 2,353 2,291
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Total assets 3,101 3,207 3,101 3,207 2,890
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Equity 1,224 1,257 1,224 1,257 1,321
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Net interest-bearing debt 623 735 623 735 631
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Net working capital (230) (138) (230) (138) (149)
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Cash Flows (mDKK)
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From operating activities 314 212 240 228 398
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From investing activities (43) (3) (15) 26 3
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Free cash flow 271 199 225 227 384
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Share ratios (DKK)
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RU's share of earnings per DKK 10 14.5 11.5 11.3 10.4 31.8
share
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Cash flow per DKK 10 share 29.6 19.2 22.6 20.6 36.4
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Dividend per DKK 10 share 0.0 0.0 0.0 0.0 17.0
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Year-end price per DKK 10 share 371.5 339.0 371.5 339.0 321.5
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Financial ratios (%)
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Free cash flow as a percentage of net 16 12 23 23 11
revenue
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Cash conversion 174 155 185 196 110
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Equity ratio 40 39 40 39 46
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Ratios comprised by the “Recommendations and Financial Ratios 2010” issued by
the Danish Society of Financial Analysts have been calculated according to the
recommendations.