Royal UNIBREW A/S has provided the Interim Report for the 2020, from 1st January to 30th June. It showed solid results which the company says were achieved because of “strong operational focus and cost management.”
During the first half of 2020, the company faced a major uncertainty raised by COVID-19. pandemic. The company changed the priorities to direct itself toward managing the cost base by looking for new opportunities. The company succeeded to keep its EBIT margin in line with last year despite the organic reduction of 7% in revenue and negative mixed results.
On-Trade was closed in most of the markets in the beginning of the second quarter and the consumers faced many social distancing restrictions. Whole with time and at the end of the quarter most of company’s markets saw some signs of recovery amid the ease of COVID-19 related restrictions and gave the return to about 70% of what it gets on routine sales levels.
During the first half of 2020, the company’s volumes posted 4% organic decrease with amount of 5.3 million hectolitres as compared previous year same period hectolitres of 5.5 million. Net revenue for first half amounted to DKK 3,566 million, posting a 7% decrease compared to DKK 3,791 million in same period of previous year. While for the second quarter these were DKK 2,042 million compared to DKK 2,270 million in second qaurter of 2019. The company reported earnings before interest and tax (EBIT) of DKK 663 million during the first half of 2020, DKK 47 million lower than DKK 710 million reported in first half of 2019.
The company managed to get EBIT margin of 18.6% in H1 2020 with just 0.1 percentage point decreased. While in Q2 2020, the EBIT-margin increased 0.6 percentage point to 22.6%. While EBITDA margin remained 23.4% during the first half of 2020 with 0.2 percentage point increase and increased 1.0 percentage point to 26.7% in second quarter of 2020.
During the first six months of 2020, COVID-19 outbreak affected all markets of the company and the consumers and customers faced subsequent restrictions because of which the company significant uncertainty. Then, the company initiated various initiatives in order to mitigate the negative impact of Pandemic and maximize the business flexibility and also secured its capabilities of earnings during the raised challenges of pandemic.
Cheyenne Cox is a news report covering multiple Market and economy News. She is creative and highly professional writer. Cheyenne holds a degree in communication and journalism and has also a Diploma in digital marketing. She belongs to south Africa who has also lived in Europe and is currently based in the US.