Interim Report H1 2020
1 January - 30 June 2020
19 August 2020
Solid H1 performance
- Strong operational focus and cost management
- Agile and resilient organization that quickly responded to COVID-19 challenges and leveraged new opportunities
- Net revenue decreased 6% (7% organically) and EBIT decreased by 7%
- Strong cash flow generation
- Outlook for full year 2020 EBIT upgraded from DKK 1,250- 1,375m to DKK 1,425-1,525m
- Full dividend payment in September
- COVID-19
- Strong performance in Off-Trade
- Part of the On-Trade business re-opened in May
- Border trade re-opened in June
- Most of nightlife (Finland and Italy open) and festivals remain closed
Development Net Revenue per month H1
mDKK | ||||||||||||||||||
1000 | ||||||||||||||||||
+7% | ||||||||||||||||||
900 | ||||||||||||||||||
800 | ||||||||||||||||||
-23% | -16% | |||||||||||||||||
700 | ||||||||||||||||||
-9% | ||||||||||||||||||
600 | ||||||||||||||||||
500 | +5% | +6% | ||||||||||||||||
400
300
200
100
0
January February March | April | May | June | |||
2019 | 2020 | |||||
Interim Report - H1 2020 | 2 |
Baltic Sea
Financial result
- Net revenue decreased by 5%
- Total volume decreased by 1%
- EBIT increased 4% and EBIT-margin improved 1.6 percentage point to 21%
- Positive product mix and acquisition effect from Bauskas
COVID-19
- Good re-start after restaurant re-opening in May
- Excellent Zero Zone in-store execution
- Staycation has had a positive impact on Off-Trade (Finland)
- Innovative solutions to utilize public areas to build summer outdoor terraces in Lithuania
Baltic Sea EBIT and EBIT margin | |||||||||
mDKK | 21,0% | ||||||||
400 | 18,0% | 19,4% | |||||||
350 | |||||||||
300 | 311 | 322 | |||||||
250 | 291 | ||||||||
200 | +7% | +4% | |||||||
150 | |||||||||
100 | |||||||||
50 | |||||||||
0 | |||||||||
H1-2018 | H1-2019 | H1-2020 |
The Baltic Sea segment comprises the markets in Finland and the Baltic countries (Lithuania, Latvia and Estonia) as well as a license business in Russia
Interim Report - H1 2020 | 3 |
Western Europe
Financial result
- Net revenue decreased by 11%
- Total volume decreased by 8%
- EBIT decreased 24% and EBIT-margin declined 3 percentage point to 16.2%
COVID-19
- The COVID-19 outbreak has affected all countries negatively
- Off-Tradehas been positively impacted, although not in a scale compensating for the lost On-Trade business
- We will reimburse the salary compensation received in Denmark
- We have gained market shares in France
Western Europe EBIT and EBIT margin
mDKK | 18,8% | 19,2% | |||||||
400 | |||||||||
16,2% | |||||||||
350 | |||||||||
353 | |||||||||
300 | 308 | ||||||||
250 | 267 | ||||||||
200 | |||||||||
+15% | -24% | ||||||||
150 | |||||||||
100 | |||||||||
50 | |||||||||
0 | |||||||||
H1-2018 | H1-2019 | H1-2020 |
The Western Europe segment comprises the markets in Denmark, Germany, Italy (incl. the Balkan countries) and France
Interim Report - H1 2020 | 4 |
International
Financial result
- Net revenue increased by 13%
- Total volume increased by 4%
- EBIT increased 32% and EBIT-margin increased 3.1 percentage point to 21.3%
- We estimate that stock levels have been rebalancing in Q2
- Sales out trend just above 10%
COVID-19
- Fragmented impact from COVID-19 where we have seen Asia moving faster towards a more normal situation compared to Europe and the Caribbean markets
International EBIT and EBIT margin
mDKK | ||||||||||
100 | 22,5% | 21,3% | ||||||||
18,2% | ||||||||||
80 | ||||||||||
82 | ||||||||||
60 | ||||||||||
59 | 62 | |||||||||
40 | +5% | +32% | ||||||||
20 | ||||||||||
0 | ||||||||||
H1-2018 | H1-2019 | H1-2020 |
The International segment comprises the export and license business to international markets outside Denmark (incl. Germany), Finland, Italy (incl. the Balkan countries), France and the Baltic countries
Interim Report - H1 2020 | 5 |
Our CSR agenda
- Despite COVID-19 our focus and commitment remain the same
- Changes in channel/product mix due to COVID-19 might adjust the speed of implementation of some targets
- Launch of new products supports the target of a more balanced portfolio between regular, sugar reduced and sugar free soft drinks
- More products with low or non-alcohol has been launched
- Several donations of products has been given to assist the first responder that are in the front line of COVID-19
Martinique - donation to doctors Department of Public Health
Interim Report - H1 2020
6
Financial performance
mDKK | H1 2020 | H1 2019 | FY 2019 | ||
Volume (thousand hl) | 5,269 | 5,462 | 11,023 | ||
Net revenue | 3,566 | 3,791 | 7,692 | ||
EBITDA | 833 | 879 | 1,814 | ||
EBITDA margin (%) | 23.4 | 23.2 | 23.6 | ||
EBIT | 663 | 710 | 1,469 | ||
EBIT margin (%) | 18.6 | 18.7 | 19.1 | ||
Profit before tax | 648 | 700 | 1,458 | ||
Net profit | 505 | 541 | 1,140 | ||
Free cash flow | 590 | 612 | 1,140 | ||
Net interest-bearing debt | 2,113 | 3,000 | 2,705 | ||
NIBD/EBITDA (times)* | 1.2x | 1.7x | 1.5x | ||
Equity ratio (%) | 40 | 30 | 37 | ||
* Running 12 months | |||||
Interim Report - H1 2020 | 7 |
EBIT - Bridge
mDKK
750 | -225 | 13 | |||
710 | |||||
123 | |||||
600 | 42 | 663 | |||
450 | |||||
485 | |||||
300
150
0
EBIT H1'19 | Lost revenue | Production cost | Sales and distibution | Administrative expenses | EBIT H1'20 |
expenses |
Interim Report - H1 2020 | 8 |
Outlook
mDKK | Outlook 2020 | Outlook 2020 | Outlook 2020 | Actual |
(August 2020) | (June 2020) | (March 2020) | 2019 | |
Net revenue | 7,692 | |||
EBIT | 1,425-1,525 | 1,250-1,375 | Around 2019 level | 1,469 |
Assumptions
Guidance is based on the full year assumptions as presented in the outlook for 2020 set out in the 2019 annual report; however, supplemented with following assumptions:
- COVID-19will continue to impact the business - but with balanced restrictions
- Large part of the On-Trade remain open, but majority of nightlife and events remains closed in most markets. In general, On-Trade is expected to trade below last year
- Price/mix in Off-Trade to be broadly in line with 2019 assuming on-the-go consumption to get closer to the level of 2019 during the second half of the year
- Continued high focus on discretionary spend
- Sufficient financial flexibility to make commercial investments in marketing and sales initiatives
mDKK DEVELOPMENT IN NET REVENUE PER MONTH
1.000 | |||||||||||||||||||||||||||||
+7% | +7% | ||||||||||||||||||||||||||||
800 | |||||||||||||||||||||||||||||
600 | |||||||||||||||||||||||||||||
400 | |||||||||||||||||||||||||||||
200 | |||||||||||||||||||||||||||||
0
January February March | April | May | June | July | ||||
2019 | 2020 | |||||||
Interim Report - H1 2020 | 9 |
Management priorities
- Safety of our employees and customers
- Stay very close to markets and follow the opportunities
- Building a strong commercial plan for 2021
- Secure financial flexibility
- Risk Management
Interim Report - H1 2020 | 10 |
Appendix
Interim Report - H1 2020 | 11 |
Financial performance
mDKK | H1'20 | H1'19 | Change |
P&L ITEMS | |||
Net revenue | 3,566 | 3,791 | -225 |
Gross margin | 51.2% | 53.0% | -1.8pp |
EBITDA | 833 | 879 | -46 |
EBITDA margin | 23.4% | 23.2% | 0.2pp |
EBIT | 663 | 710 | -47 |
EBIT margin | 18.6% | 18.7% | -0.1pp |
Profit before tax | 648 | 700 | -52 |
Net profit | 505 | 541 | -36 |
mDKK | H1'20 | H1'19 | Change |
BALANCE SHEET ITEMS | |||
Net interest bearing debt | 2,113 | 3,000 | 887 |
Net working capital | -650 | -749 | -99 |
Total assets | 8,837 | 8,907 | -70 |
Equity | 3,545 | 2,663 | 882 |
Equity ratio | 40% | 30% | 10pp |
Invested capital | 6,076 | 6,068 | 8 |
ROIC ex. goodwill* | 29% | 32% | -3pp |
ROIC incl. goodwill* | 18% | 20% | -2pp |
* Running 12 months - EBIT not full year for acquisitions
Interim Report - H1 2020 | 12 |
Development of key figures
Volume million hl
Change | -4% | ||
6,0 | |||
5,0 | |||
4,0 | |||
3,0 | 5,5 | 5,3 | |
2,0 | |||
1,0 | |||
0,0 | 2019 | Change | 2020 |
Net revenue DKKm
Change | -6% | ||
4.000 | |||
3.200 | |||
2.400 | 3.791 | ||
1.600 | 3.566 | ||
800 | |||
0 | 2019 | Change | 2020 |
Net revenue /HL
700 | -19 | ||
600 | |||
500 | |||
400 | 683 | 664 | |
300 | |||
200 | |||
100 | |||
0 | 2019 | Change | 2020 |
EBIT DKKm | |||
Margin | 18.7% | -47 | 18.6% |
900 | |||
750 | |||
600 | |||
450 | 710 | 663 | |
300 | |||
150 | |||
0 | |||
2019 | Change | 2020 |
Interim Report - H1 2020 | 13 |
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Disclaimer
Royal UNIBREW A/S published this content on 19 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2020 07:56:00 UTC