Royal Unibrew Seen as Less Diversified than Peers

Dow Jones
08/18

1227 GMT - Danish drinks group Royal Unibrew is less diversified than its peers but is more expensive, Jefferies analysts write. The 2028 expiration of a distribution partnership with PepsiCo for Denmark, Finland and the Baltics undermines the Danish group's model, the analysts say. The end of the tie-up will lead to transition costs of around 300 million kroner, they say. "We see cheaper and more diversified ways to play EU beer and soft drinks." The group reported first-half earnings before interest and tax of 1.03 billion Danish kroner, 2.5% below consensus analyst estimates Tuesday, the analysts say. Shares fall 6.6%.

 

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