Royal Unibrew falls after it forecasts higher than expected financial costs

Royal Unibrew A/S

29/02/2024 10:29

** Shares in Royal Unibrew  RBREW.CO  fall around 3% after
the Danish brewer and beverage group forecast higher than
expected financial costs this year, while posting 2023 revenue
below its own guidance 
    ** It expects finance charges of DKK 350 million ($50.96
million) in 2024 vs consensus outlook of DKK 275 million 
    ** Given the higher charges, J.P.Morgan sees FY24 EPS
consensus to decline by a mid single digit
    ** The company's new long-term financial target is to grow
EBIT organically by an average 6-8% per year against a Bloomberg
consensus for EBIT growth CAGR of around 10% in 2025-2027, cited
by JPM
    ** "The new target marks a move away from the 20-21% EBIT
margin target provided in the past" JPM notes
   ** The brewer posts yearly revenue at DKK 12,927 million in
2023, 3% below its guidance for DKK 13,300 million

($1 = 6.8687 Danish crowns)

 (Reporting by Agnieszka Oleńska)
 ((Agnieszka.Olenska@thomsonreuters.com;))