Royal Unibrew (RBREW) Q1 2026 TU earnings summary

Executive summary

• The PepsiCo partnership in Northern Europe, covering Denmark, Finland, the Baltics, and border trades in Germany, will end by the close of 2028, impacting about 13% of current net revenue, while the BeNeLux partnership continues.

• Multi-beverage strategy and focus on own brands remain unchanged, with mitigation plans and flexibility to accelerate own brand growth and pursue new partnerships.

• Q1 2026 delivered strong organic volume growth of 5%, organic EBIT up more than 20%, and margin expansion, supported by innovation and Easter timing.

• Full-year 2026 outlook is reiterated despite macro uncertainty, with mitigation actions in place for partnership changes.

• Free cash flow improved year-over-year, though Q1 remains seasonally negative.

Financial highlights

• PepsiCo business in Northern Europe represents about 13% of net revenue, expected to decline as own brands grow.

• Q1 net revenue was DKK 3,311m (+3.3%), organic revenue growth 2.1%, and organic EBIT growth 21.4%.

• EBIT margin improved to 8.3% (up 150 bps year-over-year); EPS up 40% to DKK 3.5.

• Gross margin rose to 40.6% from 40.0% year-over-year.

• Free cash flow improved by DKK 98m year-over-year; gearing ratio at 2.1x.

Outlook and guidance

• Organic EBIT growth of 6%-8% expected through 2028; 2029 will be a transition year with lost revenue and scale, but profitability expected to exceed 2028 levels by 2030.

• Full-year 2026 outlook reiterated: organic EBIT growth of 6%-10%, net revenue broadly in line with 2025, with reported revenue reduced by 3.5% due to exit from low-margin activities.

• CAPEX for 2026 expected at 6.4%-7% of net revenue, including leasing repayments.

• Commodity inflation, macro uncertainty, and consumer sentiment remain risks, but hedging and operational efficiencies are in place.

• Effective tax rate expected around 22%.