Equity story

Royal Unibrew is a growth company with high cash generation and a disciplined capital allocation for the benefit of all our stakeholders.

 

Leading brand portfolio

We want to be THE PREFERRED CHOICE for our customers and consumers. This is secured through a portfolio of beverages that can be kept at ambient temperatures. Superior portfolios are based on strong local brands supported and enforced by strong, well-known international brands through partnerships.

Cash generative business

Our multi-beverage operating model yields high profitability, as beverages, assets and people are leveraged throughout the value chain. High profitability is the foundation for a high return on invested capital (ROIC), which secures the ability to invest in value creating growth – both organic and inorganic – while maintaining our financial flexibility.

Strong market positions

Our strong market positions are vital for profitability.
Multi-niche and multi-beverage offerings through leading brand portfolios increase the numbers of must stock brands in the individual markets and thereby increase our portfolios’ attractiveness toward customers. We are a market leading beverage supplier throughout the Nordics and the Baltic countries, while we are market leading in categories in our multi-niche markets.

Disciplined capital allocation

The main objective of our capital allocation is to maintain financial flexibility in order to make the necessary investments in organic growth – and at the same time still be able to do value creating acquisitions. Historically, this approach has enabled a healthy redistribution of surplus cash through dividends and periodic share buy-backs.

Clear growth and value oriented long-term strategy

We have identified six focus areas for Royal Unibrew’s long-term strategy: energy drinks, enhanced water, cider/RTD, no/low sugar products, no/low alcoholic products and premiumization. All these areas are expected to structurally grow faster than the average beverage market. In addition, most of the areas are expected to generate higher margins than Royal Unibrew’s average margin.

Strong track record of earnings growth

The development of the multi-beverage operating model and the expansion of market platforms, from which we have and are creating multi-beverage operating models, have over time created significant earnings growth. During the past ten years, the average annual growth in EBIT has been 12%, which has been driven by both organic and inorganic contributions.

A sustainable business

Royal Unibrew has established a robust foundation with concrete initiatives, goals and KPIs for achieving our long-term strategy of being among the most sustainable beverage companies globally. We continue to support UN Global Compact and has enrolled in the Task Force on Climate-Related Financial Disclosures (TCFD). By the end of 2022, we also submitted our ambitious emissions reduction targets to the Science Based Targets initiative (SBTi) for official validation.