Royal Unibrew boosts profit forecast, shifts from low-margin business

Royal Unibrew raised its full-year profit forecast on Wednesday after reporting a 15.1% rise in third-quarter earnings before interest and tax (EBIT), driven by higher margins and market share gains.

The Danish brewer now expects full-year EBIT growth to be at the high end of its previously announced 8-12% range, it said in a trading statement.

Third-quarter EBIT rose to 777 million Danish kroner, while net revenue grew 5.3% to 4.3 billion Danish kroner.

The company attributed the strong performance to commercial momentum and a strategic shift away from less profitable products.

"Our strategic decision to reduce private-label production in Italy and phase out low-margin business underlines our commitment to quality growth in the most attractive beverage categories," CEO Lars Jensen said.

The company also noted a strong recovery in its key Finnish market, which had a soft second quarter due to cold weather.

Earnings per share for the quarter increased by 20.4%, according to the company.