Danish drinks group Royal Unibrew has reported an 8% increase in organic net sales in the third quarter of its financial year, to DKK 4.08 billion (€530.4 million).
Organic volume growth was 8% in the period, with the Faxe and Royal beer brewer either gaining or maintaining its market share in most countries in which it operates.
It posted organic EBIT growth of 25%, with EBIT from acquisitions totaling DKK 41 million (€5.3 million) in the third quarter.
'Strong Momentum'
"I am very pleased with the performance delivered in the third quarter," commented Lars Jensen, CEO. "It confirms the strong momentum we have seen over the past quarters and that we are on track to deliver on our full-year guidance.
"The profitability improvement was not only driven by strong performance in our beer businesses in ‘International’ and Italy but also by continued improvements in efficiency."
Pernod Ricard Acquisition
Royal Unibrew has been active on the transaction front recently, signing an agreement in October to acquire Pernod Ricard's portfolio of spirits, liqueurs, and local wine in Finland, while it also recently commenced operating PepsiCo’s beverage business in Belgium and Luxembourg.
Elsewhere, Royal Unibrew recently signed an agreement to sell its shareholding in Perla Browary Lubelskie S.A. and Ferell sp. Z.o.o., resulting in a tax-free gain of DKK 207 million (€26.9 million). This was recognized as financial income in Q3, the company noted.
Royal Unibrew has maintained its expectations for DKK 15 billion (€1.95 billion) in net revenue this year, while M&A contribution from Vrumona and San Giorgio is expected to be around DKK 1.5 billion (€195 million).
"We will continue to drive efficiency improvements, and we have a pipeline of initiatives that will be implemented in the coming years," Jensen added. "Also, we continue to strengthen our portfolio of high-quality brands through investments and innovation, which is reinforcing our market position, and it gives me confidence that we have built a strong foundation for future growth and value creation."
