DENMARK: Lower costs lift Royal Unibrew's FY profits
- Profits leap on lower costs, charges
- Sales dip by 1%
- Outlook mixed
Royal Unibrew's profits leap in 2010
Lower production costs and fewer charges have helped Royal Unibrew to report its highest full-year profits in at least five years, despite a dip in sales.
The Danish brewer's net profits leapt by 529% for the 12 months to the end of December, to DKK278.1m (US$51.8m). The total marks the company's best profits performance since at least 2006 and is a sign that the company is emerging from a period of restructuring, which saw it sink to losses of DKK484m in 2008.
In 2010, profits were boosted by lower production costs and lower financial charges, including lower borrowing costs and fewer interest payments, as well as a one-off hedging gain.
Net sales, however, slipped by 1% on the previous year, to DKK3.77bn, due to lost volumes relating to the divestment of the group's Caribbean subsidiary in 2009. Excluding that business, sales rose by 3% versus 2009, said the brewer.
"In 2010 we reinforced our market positions through increased marketing efforts and several new product launches," said Royal Unibrew's CEO, Henrik Brandt, earlier today (9 March). "At the same time, we maintained focus on increasing efficiency and reducing our costs," he said.
The group is expecting a mixed 2011. It forecast that net sales will be between DKK3.4bn and DKK3.55bn, at least 6% lower than in 2010. Earnings before interest and tax, meanwhile, are expected to be between DKK435m and DKK485m, at least 4% higher than in 2010.
For the full report, click here.
- A tobacco analogy soft drinks will want to embrace
- Pernod's Portman Group penalty - a coincidence?
- just The Preview - SABMiller's Q1
- Cleaning China's seedier side brings Remy balance
- just Five Years Ago: A-B InBev sells Oriental
- Diageo's Captain Morgan Facebook ad banned
- Diageo faces public consultation over W&M sale
- William Grant silent on Drambuie bid talk
- Bacardi to fight US football team legal action
- Remy posts Q1 sales drop as Edrington loss bites