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Royal Unibrew: Royal Unibrew's Strong 2025 Performance Driven by Disciplined Execution

Royal Unibrew delivered a solid financial performance in 2025, with revenue growth of 5% in line with guidance, and EBIT increasing by 12% at the top end of the 8% to 12% guidance range. The company's EBIT margin expanded by 90 basis points to 14%, reflecting continued improvement in operational efficiency across the organization. Earnings per share (EPS) came in at 7.04, significantly beating analyst estimates of 2.79. The strong EPS performance was driven by the company's focus on profitable growth and efficiency.

RBREW.CO

DKK 623

-2.35%

A-Score: 5.7/10

Publication date: February 27, 2026

Author: Analystock.ai

πŸ“‹ Highlights
  • Revenue & EBIT Growth: Royal Unibrew achieved 5% revenue growth and 12% EBIT increase in 2025, with EBIT margin expanding 90 bps to 14%.
  • Growth Categories Performance: No/low sugar carbonated soft drinks grew 9%, while ready-to-drink alcoholic beverages rose 1% in 2025.
  • Regional EBIT Surge: Western Europe drove 55% EBIT growth in 2025, outperforming other segments.
  • Q4 Momentum: Q4 net revenue grew 6%, with EBIT rising 9%, accelerating full-year growth to 12% and gross profit up 6%.
  • Capital Return Strategy: Launched a DKK 400 million share buyback program until mid-2026 to return excess capital to shareholders.

Segment Performance

The company's segments performed well, with Northern Europe delivering a solid performance in a relatively flat market environment. Western Europe was the strongest performing segment in 2025, with revenue growing by 12% and EBIT increasing by 55%. International growth accelerated strongly towards the end of the year, with volume growing 33% organically in Q4. The growth category framework continues to guide the company's resource allocation, with around 60% of group net revenue sitting in 4 growth categories.

Valuation Metrics

Using the current valuation metrics, Royal Unibrew's P/E Ratio stands at 19.57, indicating that the market is pricing in a certain level of earnings growth. The company's ROE is 24.09%, which is a strong indicator of its ability to generate returns on equity. The EV/EBITDA ratio is 15.02, which suggests that the company's enterprise value is reasonable relative to its EBITDA. With a Dividend Yield of 4.74%, the company is also providing a relatively attractive return to shareholders.

Outlook and Guidance

The company expects organic EBIT growth of 6% to 10% in 2026, reflecting continued focus on profitable growth and efficiency in a still challenging environment. As Lars Vestergaard mentioned, the company's ultimate target is a high return on capital employed and solid cash conversion, and they are not focusing on a specific EBIT margin target, but rather on driving organic EBIT growth. The company's guidance is cautious and disciplined, and it is well-positioned to continue delivering value to shareholders.

Growth Drivers

The company's growth drivers include its focus on growth categories, value management, and operating leverage. The company is also driving efficiency through digital investments and has a pipeline of structural projects to reduce costs. With a robust balance sheet, the company is well-positioned to invest in the business and return capital to shareholders.

Royal Unibrew's A-Score