Royal Unibrew (RBREW) Q4 2025 earnings summary

Executive summary

• Achieved 5% revenue growth and 12% EBIT growth in 2025, both at the top end of guidance, with EBIT margin expanding by 90 bps to 14%.

• Margin expansion driven by operational efficiency and cost discipline across all markets, despite cautious consumer sentiment and macroeconomic uncertainty.

• Strong cash flow supported a new share buy-back program and continued progress on sustainability, employee safety, and shareholder returns.

• 2026 guidance targets 6%-10% organic EBIT growth, ahead of long-term targets, with a focus on profitable growth, efficiency, and ROIC improvement.

Financial highlights

• Net revenue reached DKK 15,723m, up 5% year-over-year; Q4 revenue up 6%.

• EBIT increased 12% to DKK 2,202m, with margin at 14%; gross profit margin improved to 43.0% from 42.5%.

• Adjusted EPS rose 25% year-over-year to 31.4, excluding 2024 shareholding sales.

• Free cash flow (excluding equity sales) increased 13% to DKK 1,378m; underlying free cash flow up 12% after adjusting for 2024 asset sales.

• Net profit grew 7% to DKK 1,560m; net interest-bearing debt at DKK 5.7 billion; leverage at 2x EBITDA.

Outlook and guidance

• 2026 organic EBIT growth expected at 6%-10%, above long-term 6%-8% target, with net revenue broadly flat due to exit from lower-margin businesses.

• CapEx guided at ~7% of net revenue for 2026, reflecting delayed investments.

• Dividend payout ratio maintained at 51%, with proposed dividend of DKK 16 per share for 2025.

• Net financial expenses expected at DKK 250 million; effective tax rate at 22%.

• Profitability may be influenced by consumer sentiment, channel mix, competition, and weather.