Analysts Have Made A Financial Statement On Royal Unibrew A/S' (CPH:RBREW) Half-Year Report

It's been a good week for Royal Unibrew A/S (CPH:RBREW) shareholders, because the company has just released its latest half-year results, and the shares gained 5.0% to kr.542. Results look mixed - while revenue fell marginally short of analyst estimates at kr.7.4b, statutory earnings were in line with expectations, at kr.11.20 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Royal Unibrew

Taking into account the latest results, the most recent consensus for Royal Unibrew from nine analysts is for revenues of kr.15.3b in 2024. If met, it would imply a modest 7.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 17% to kr.27.20. In the lead-up to this report, the analysts had been modelling revenues of kr.15.3b and earnings per share (EPS) of kr.26.41 in 2024. So the consensus seems to have become somewhat more optimistic on Royal Unibrew's earnings potential following these results.

The consensus price target was unchanged at kr.568, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Royal Unibrew analyst has a price target of kr.694 per share, while the most pessimistic values it at kr.410. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Royal Unibrew shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Royal Unibrew'shistorical trends, as the 16% annualised revenue growth to the end of 2024 is roughly in line with the 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. So it's pretty clear that Royal Unibrew is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Royal Unibrew's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Royal Unibrew going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Royal Unibrew that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.