DENMARK: Royal Unibrew sees Q1 losses dip

By just-drinks.com editorial team | 28 April 2006

Royal Unibrew has posted increased losses in its first quarter.

The Danish brewer said yesterday (27 April) that losses in the three-month period rose to DKK52.4m (US$8.8m), compared to a loss of DKK17.4m in the corresponding period a year earlier. Sales were up slightly, however, at DKK648m from DKK626.4m last year.

Royal Unibrew blamed the fall on an increase in sales and marketing costs as well as costs associated with the consolidation of acquired operations, local reports said.

For the full-year, the brewer expects pre-tax profit to come in at between DKK310m and DKK350m.

Earlier this year, Royal Unibrew, formerly known as Bryggerigruppen, posted full-year sales for 2005 of DKK3.2bn, a year-on-year increase of 11%. In 2004, the company snapped up Latvian brewer Lacplesa Alus and Polish breweries Brok and Strzelec and said that the cost of the acquisitions had weighed on profits. Nevertheless, EBITDA for the year rose 2% to DKK312.6m.

Sectors: Beer & cider