Danish brewer Harboes Bryggeri has issued its forecasts for EBITDA and pre-tax profits for its upcoming new financial year.
In a statement issued on 28 April, the Skælskør-based company said it expects to deliver an EBITDA of DKr130-160m ($19.8-24.4m) and a profit before tax of DKr30-60m for the financial year 2025/26.
The company said it expects organic growth in beverages in both Denmark and export markets, driven by own brands.
Besides, the company has opted out of “selected” low-margin private-label contracts in Germany.
“This planned strategic consolidation of the beverages business is expected to result in an overall decrease in volume and revenue in beverages, while the overall EBITDA margin for beverages is expected to improve,” CFO Simon Andersson said.
In Harboes Bryggeri’s ingredients division, volume and revenue are expected to increase, supported by expanded cooperation with existing customers on new product types and the acquisition of new customers.
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By GlobalDataThe company is also planning a series of investments in 2025/26 to promote a more “efficient” and “sustainable” business.
Following years of deferred upgrades, the group has launched several initiatives, including investments in production equipment. This is aimed at enabling “cost efficiency and delivery reliability in the supply chain,” Andersson said.
The brewer expects these completed and planned investments across the current and next financial years will lead to higher depreciation in 2025/26.
Additionally, the company will begin implementing a new ERP system to support ongoing operations and future growth.
Further details will be outlined in the annual report scheduled for release on 26 June.
For the financial year 2024/25, Harboes Bryggeri has maintained its expectations of an EBITDA between DKr140-150m and a profit before tax of DKr50-60m, revised projections it set out last month
On 27 March, the group issued a profit warning, blaming higher production costs as a main reason for the move. It projected EBITDA of DKr140-150m and profit before tax of DKr50-60m.
Long-term targets remain unchanged, the statement added. Harboes Bryggeri continues to aim for an EBITDA margin above 10% and a return on invested capital (ROIC) of more than 8%.
