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Royal Unibrew provides updated guidance for 2020 with easing of COVID-19 restrictions.

NORDIC BUSINESS REPORT-June 17, 2020-Royal Unibrew provides updated guidance for 2020 with easing of COVID-19 restrictions

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Royal Unibrew A/S (CPH:RBREW), a producer of beer, soft drinks, orange juice and mineral water, on Tuesday provided its updated guidance for 2020.

On 19 March 2020 Royal Unibrew had suspended its guidance for 2020 due to unprecedented uncertainty following the outbreak of COVID-19. The suspension was re-confirmed on 28 April 2020.

According to the company, the restrictions imposed on its consumers and customers are gradually being lifted and the majority of its sales channels have re-opened. Consequently, transparency and confidence have increased to a level where it can provide an updated guidance for 2020.

Under the updated financial guidance for 2020, EBIT is now expected to be in the range of DKK1,250m to DKK1,375m, as compared with the prior guidance of DKK1,469m, same level as in 2019.

This guidance assumes no second wave of COVID-19, but a slow gradual re-opening throughout the remainder of 2020; a gradual normalisation of On-Trade over the remainder of 2020, but on a like for like basis and thus not reaching the same level as last year in any of the remaining months of 2020, with Northern Europe expected to open faster than central and south Europe; a substantially lower level of fixed costs as well as lower sales and marketing and a normal summer, as in 2019, where more people are expected to spend their vacation in their home country and thus expectedly support company's sales.

According to the company, in June 2020, it has experienced a solid start to the month with reasonable weather in its core markets and long weekends and bank holidays. It therefore expects June 2020 to improve, as compared to the May 2020 performance level.

(EUR1.00=DKK7.45)

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Publication:Nordic Business Report
Date:Jun 17, 2020
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