Denmark: Royal Unibrew on the fast lane

Denmark’s second largest brewing group Royal Unibrew has concluded last year one of the most successful years in its history. The group which is headquartered in Faxe, Denmark, announced in June 2018 to acquire for DKK 350 million (US$ 55m) on a debt-free basis Bev.Con, a marketing company which first introduced energy drinks to the Danish market and which sold in 2017 about 113,000 hl of energy drinks under brand names  like CULT Energy, Shaker and Mokaï (inside.beer, 29.6.2018).

Shortly later on July 6th, 2018 Royal Unibrew said it would buy Etablissements Geyer Fréres at a price of DKK 660 million (US$ 104m).  The France based craft lemonade business owns, produces and distributes the Lorina, PureThé and InFreshhh brands with a focus on organic, artisanal products. Etablissements Geyer Fréres sold about 360,000 hl in 2017 and recorded annual revenues of about DKK 290 million (US$ 46m). It has production facilities in Munster in the north-east of France and exports about 40% of its products with a significant presence in the USA.

On January 2, 2018 Royal Unibrew also completed the DKK 0.6 billion acquisition of the Italian business Terme di Crodo from Gruppo Campari which was already announced on October 4th, 2017. Terme di Crodo owns brands like Freedea Lemonsoda, Freedea Oransoda, Freedea Pelmosoda, Crodo Lisiel and Crodo Chinotto and operates production facilities in Crodo in the north-western parts of Italy close to Lago Maggiore. In 2016, the company sold about 530,000 hl and had revenues of about DKK 245 million (US$39m).

Financing of the acquisitions is secured by a seven-year DK500 million (US$45m) loan facility by Nordic Investment Bank as Royal Unibrew and the financial institute informed in December.

The brewery group presented its financial statement for the third quarter, with net sales increasing by DKK 420 million (US$65m) to DKK 2.1 billion (US$329m), an increase of 25% compared to the third quarter of 2017.

Overall, Denmark's second largest brewery group achieved net sales of approx. DKK 5.6 billion (US$860m) in the first nine months of the year against approx. DKK 4.9 billion (US$750m) in the same period last year, while EBIT improved by DKK 230 million (US$35m) to DKK 1.1 billion (US$170m).

In 2017, the whole group sold 9.6 m hl of beer, soft drinks and other beverages, achieved combined sales of DKK 6.4 billion (US$1bn), an EBIT of DKK 1.1 billion (US$170m) and a net profit of DKK 831 million (US$128m).

 

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