News

DENMARK: Royal Unibrew slashes guidance on Q3 profit plunge

Most popular

Coffee's squeeze on energy & functional drinks

Carlsberg Performance Trends 2016-2020 - data

Why the future for wine in cans has arrived

Brown-Forman in fiscal-2021 - results preview

White spirits trying to ride hard seltzer craze

MORE

Royal Unibrew has more than halved its profit forecast for 2008, following a "disappointing" third quarter.

Pre-tax profit for 2008 is expected to be between DKK60m (US$10m) and DKK80m, instead of the previously anticipated range of DKK180-200m, said Royal Unibrew yesterday (20 November).

High costs for raw materials, deteriorating consumer confidence in key markets and one-off charges associated with acquisitions and disposals have hampered the brewer this year, and particularly in the third quarter, it said.

Pre-tax profit slid to DKK38m for the third quarter, down from DKK106m during the same period last year.

One-off charges included DKK57m of costs related to a reorganisation in Denmark, including the closure of the Aarhus brewery, the group said.

Decline on the Italian beer market, as well as declines in both beer and soft drinks sales in Denmark and Latvia, held sales back, it said.  

Price increases and Poland helped revenue to climb by 11% to DKK1.15bn during the quarter, reflecting a 5% rise on an organic basis, however. 

In its outlook, Unibrew said: "Due to the current global economic development and increasing uncertainty and caution on the part of customers and consumers, Q4 of 2008 is [also] expected to yield a profit before tax that is significantly below that of Q4 2007."

On revenue, it added: "In particular, sales in Eastern Europe are expected to continue to be affected by a significant shift in consumer confidence."

CEO Henrik Brandt, who took up his position on 1 November, is leading a review of the firm's strategic plan for the next three years.

 


Sectors: Beer & cider

Companies: Royal Unibrew

Related Content

How did Keurig Dr Pepper perform in Q3 2019? - results

How did Keurig Dr Pepper perform in Q3 2019? - results...

Carlsberg follows tough first half with stronger Q3 as Q4 starts well - results data

Carlsberg follows tough first half with stronger Q3 as Q4 starts well - results data...

Constellation Brands toasts Q3 for returning fiscal-2021 to normality - results data

Constellation Brands toasts Q3 for returning fiscal-2021 to normality - results data...

Remy Cointreau upbeat on H2 as first-quarter sales beat expectations - results data & comment

Remy Cointreau upbeat on H2 as first-quarter sales beat expectations - results data & comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?