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Company Announcement No 59 / 2021- 17 November 2021 Q3 2021 Trading Statement 5 % organic EBIT growth in the first 9 months of 2021 – outlook maintained Statement by Royal Unibrew's CEO , Lars Jensen : " It has been a busy quarter with substantially higher commercial investments and support to the re - opening of On - Trade . We have had to balance a continued strong underlying momentum in the business stemming from strong demand for our products across geographies against selected capacity constraints , a challenged sup ply - chain and increasing raw material prices . I am therefore very pleased that our strategy and multi - beverage business model delivered an EBIT on par with Q3 last year and 21 % above EBIT in Q3 2019 primarily driven by organic growth . " " We delivered solid organic growth in the quarter and we also completed three acquisitions in the third quarter . At the beginning of the quarter , we acquired MC Energy , the French Crazy Tiger energy drinks business , as well as announced the acquisition of Solera Beverage Group , a pan - Nordic trading and distribution business . The acquisition of Solera Beverage Group was finalized on 17 September 2021. In September , we acquired the Estonian craft beer brewery Tanker , which will strengthen our footprint in the Estonian market through an authentic local beer brand . Integration of all three acquisitions , as well as of Fuglsang , which was acquired in April 2021 , are progressing as planned , ” Lars Jensen continues . We maintain our full - year EBIT guidance of DKK 1,625-1,700 million . We continue to invest in our brands and in the growth oppor tunities we see across markets to secure the best possible momentum going into 2022 , which is expected to be a very demanding year , as we need to fend off the significant price increases in raw materials and freight costs , " says Lars Jensen . Key highlights of the quarter : Organic volume growth of 4 % ( Q1 - Q3 2021 : 9 % ) Positive price / mix primarily from better channel mix Organic revenue growth of 6 % ( Q1 - Q3 2021 : 10 % ) Higher investments in our brands than last year • Building organizational capabilities ● EBIT margin negatively impacted by raw material price increases , higher freight costs , product mix and M & A ● ● Financial highlights Q3-2021 Volume for Q3 2021 increased by 7 % compared to Q3 2020 and amounted to 3.4 million hectoliters . Organic volume growth amounted to 4 % with the difference explained by acquisitions . For Q1 - Q3 , the volume is up by 11 % , corresponding to 9 % organic growth . In Q3 , net revenue increased by 11 % ( organic : 6 % ) and amounted to DKK 2,434 million . Net revenue growth in Q1 - Q3 was 12 % ( organic : 10 % ) compared to the same period in 2020 and amounted to DKK 6,339 million . Earnings before interest and tax ( EBIT ) for Q3 was DKK 4 million lower than in 2020 and amounted to DKK 596 million ( 2020 : DKK 600 million ) . In Q1 - Q3 , EBIT increased by DKK 83 million compared to 2020 and amounted to DKK 1,346 million ( [ Q1 - Q3 2020 : DKK 1,263 million ) . The EBIT margin decreased by 1.1 percentage point to 21.2 % in the period Q1 - Q3 as a consequence of higher sales and marketing costs , higher input costs and a negative impact from acquisitions . Free cash flow amounted to DKK 551 million in Q3 2021 compared to DKK 889 in Q3 2020 , whereas free cash flow for the first nine months of 2021 was DKK 1,234 million compared to DKK 1,479 million in Q1 - Q3 2020. The development is as expected . Last year was extraordinary strong because of the Finnish beer campaign and extended payment terms for VAT and employee tax . Outlook The full - year EBIT outlook of DKK 1,625-1,700 million is maintained . SELECTED FINANCIAL HIGHLIGHTS AND KEY RATIOS U ROYAL UNIBREW mDKK Volume ( thousand hectolitres ) Net revenue EBITDA EBITDA margin ( % ) EBIT EBIT margin ( % ) Profit before tax Net profit for the period Free cash flow Net interest - bearing debt ROIC incl . goodwill [ % ) * ROIC excl . goodwill ( % ) * NIBD / EBITDA ( times ) * Equity ratio ( % ) * Running 12 - months ROYAL UNIBREW A / S FAXE ALLÉ 1. DK - 4640 FAXE CVR NO 41956712 Q3 2021 Q3 2020 3,402 3,177 2,434 2,200 697 699 28.6 31.8 596 600 1 24.5 27,3 600 603 474 475 551 889 Q1 - Q3 2021 9,359 6,339 1,624 25.6 1,346 21.2 1,349 1,068 1,234 3,398 19.3 32.9 1.7 30 Q1 - Q3 2020 8,446 5,658 1,532 27.1 1,263 22.3 1,251 980 1,479 1,837 20.5 33.7 1.0 41