Royal Unibrew cuts upper end of 2026 operating profit growth forecast to 8%
Key Facts
Royal Unibrew said in a trading statement published on November 11 that organic operating profit growth in 2026 is expected to be 6–8%, compared with its previous range of 6–10%. It lowered the upper end of its annual forecast while keeping the lower end unchanged. The revision follows the company’s year-on-year revenue and operating profit growth in the third quarter. The company said the updated forecast corresponds to operating profit of between 2,325 and 2,380 million Danish kroner, compared with 2,202 million kroner in 2025. The trading statement is scheduled to be presented on November 12 at 9 a.m. Central European Time.
Third-quarter revenue was 4,345 million Danish kroner, compared with 4,301 million kroner in the corresponding quarter of 2025, an annual increase of 1.0%. Operating profit rose to 820 million kroner from 777 million, up 5.5%. Sales volume also increased to 5.0 million hectolitres from 4.9 million, with organic volume growth of 1.4%. Organic revenue grew 1.0%, while the company said revenue growth adjusted to exclude the exit from lower-margin activities was about 4% in the third quarter and year to date. These measures reflect growth in volume and profit during the quarter, alongside the effect of the company’s exit from lower-margin activities on reported revenue.
The operating profit margin improved to 18.9% in the third quarter from 18.1% a year earlier, despite cost inflation pressures that the company said affected performance. Earnings per share rose to 12.5 Danish kroner from 11.3 kroner in the third quarter of 2025, an increase of 10.6%. In the first nine months of 2026, sales volume grew 1.6%, while revenue growth adjusted to exclude lower-margin activities was about 4%. The company said inflationary pressures during the period included energy, raw materials, production supplies, transport and distribution, and that hedging tools and pricing agreements mitigated a large part of their impact. The quarterly margin improvement therefore came against a backdrop of costs that continue to weigh on the company.
Royal Unibrew attributed the narrowing of its organic operating profit growth range mainly to difficult market conditions in Finland, supply chain problems in the BeNeLux region and higher cost inflation. It added that operating profit was affected by accelerated amortisation of 12 million Danish kroner related to its PepsiCo partnership. In its first-half update, the company had expected organic operating profit growth of between 6% and 10%, equivalent to 2,325–2,425 million Danish kroner; the upper end of the range was then lowered in the third-quarter update. Chief Executive Lars Jensen said the company had gained market share in most of its markets and was addressing higher input costs through pricing, cost measures and efficiency. He cautioned, however, that persistent inflation could add to pressure on consumer confidence and discretionary spending.
The company expects 2026 revenue to be slightly above the 2025 level, with continued growth in its beverage business offset by the exit from the snack category and other lower-margin activities. During the third quarter, it introduced cost-cutting and efficiency initiatives, alongside price increases in selected markets. It said further measures will be implemented during the fourth quarter and continue into 2027. On liquidity, free cash flow in the first nine months of 2026 rose 19.6% to 1,164 million Danish kroner, compared with 973 million in the same period a year earlier. Cash flow from operating activities was 1,788 million kroner, versus 1,724 million a year earlier.
Capital expenditure, including lease payments, fell to 624 million Danish kroner in the first nine months of 2026 from 751 million in the corresponding period. The company attributed the decline to the timing of certain projects, with investments in them expected to shift into 2027. This comes alongside the efficiency and pricing measures it is implementing in selected markets, while it kept its annual revenue forecast slightly above the 2025 level. The November 11 statement sets the full-year operating profit range at 2,325–2,380 million Danish kroner, down from a previous range that extended to 2,425 million. The company is scheduled to present its third-quarter statement on November 12.