Royal Unibrew A/S

For first half 2026, Royal Unibrew reported organic volume growth of 1.6% and underlying net revenue growth of approximately 4%; reported organic revenue growth was 0.7% after the planned exit from lower-margin activities. Gross profit rose 3.4% to DKK 3.4 billion, gross margin improved from 42.8% to 43.8%, EBIT increased 7% to DKK 1.26 billion, and EBIT margin expanded 80 basis points to 13.3%. Net profit increased 7.7% to DKK 707 million, diluted EPS rose 10.7% to 14.5, operating cash flow was DKK 908 million, CapEx was DKK 450 million, free cash flow was DKK 458 million, and leverage was 2.2x EBITDA. For the full year 2026, the company reiterated organic EBIT growth guidance of 6% to 10% and said EPS growth above 10% remains on track; management also said the midpoint of the EBIT guide is the most likely outcome, though the full range remains achievable given uncertainty.

Lars Jensen emphasized that the core strategy is unchanged but is being prioritized more toward partnerships, growth categories, own brands, Italy, International, and efficiency. He framed the PepsiCo changes as increasing the importance of strengthening the multi-beverage portfolio and accelerating brands like Faxe Kondi, while also noting that Italy and International are outperforming the assumptions behind the long-term targets. His tone was confident and constructive, with repeated emphasis on profitable growth, market-share gains, and resource reallocation toward higher-return opportunities.

Lars Vestergaard focused on the financial discipline behind the results: gross profit of DKK 3.4 billion, gross margin up to 43.8%, EBIT of DKK 1.26 billion, net profit of DKK 707 million, and EPS of 14.5. He said sales and distribution expenses rose 3.9% due to brand investment and higher transport costs, while admin expenses fell 5.5% from efficiency initiatives; financial expenses were DKK 119 million and the tax rate was 22.1%. On cash and capital allocation, he pointed to operating cash flow of DKK 908 million, CapEx of DKK 450 million, free cash flow of DKK 458 million, leverage of 2.2x EBITDA, and the launch of a DKK 300 million share buyback program. He also said 2026 benefits from hedges, especially on aluminum and energy, but 2027 will face a step-up in unhedged costs, particularly packaging.

Analysts pressed management on what supports the 6% to 10% EBIT guide, whether cost inflation could worsen in H2 and into 2027, and how much of the PepsiCo-related amortization will recur. Management said the guide reflects the usual three variables of competition, consumer sentiment, and cost, and confirmed the DKK 6 million amortization in H1 repeats in H2 and is included in full-year guidance. Questions also focused on Northern Europe volume trends, marketing and fuel costs, and pricing; management said Northern Europe is gaining share in a flat-volume environment, marketing spend is being shifted toward own brands like Faxe Kondi, and pricing actions are broad-based and already visible on shelf. On Italy and International, management said growth in those businesses is ahead of earlier expectations and remains sustainable, with strong off-trade beer growth in Italy and African-led momentum in International.