Britvic PLC 2020 Interim results

27 May 2020

“Robust start to the year, well-placed to navigate the challenges of Covid-19”
For the 26 weeks ended 31 March 2020 compared to 28 weeks ended 14 April 2019

Group Financial Headlines:

  • Reported comparisons to last year reflect 2 weeks less trading in 2020 due to change to monthly reporting
  • Restated comparisons included to enable like-for-like performance comparison
  • Revenue increased 1.4%* to £698.8m (reported -9.1%)
  • Adjusted EBIT increased 9.4%* to £75.7m (reported -9.6%)
  • Adjusted EBIT margin +80bps* to 10.8% (reported -10bps)
  • Profit after tax increased 11.5% to £38.9m
  • Adjusted earnings per share increased 2.7%** to 19.0p (reported -14.8%)
  • While confident of liquidity, Board prudently defers dividend decision to later in year, when impact of Covid-19 will be clearer

Strategic Headlines:

  • Robust start to the year, with value share gains in GB, Ireland and Brazil
  • Revenue growth led by local favourites – Robinsons, MiWadi, Maguary, Pepsi, Tango and 7UP
  • Since mid-March, government restrictions on general people movement and on trading activity in the hospitality industry have significantly impacted Out-of-Home, including on-the-go consumption. Packs for At-Home consumption have increased in volume driving an adverse pack mix
  • Stress tests underpin confidence in liquidity position and covenant compliance for the next 18 months

Covid-19 Response:

  • Entered this period from a position of strength with a solid balance sheet and trading momentum
  • Clear set of priorities established – Safeguarding our people; Maintaining operational agility; Supporting our communities; and Retaining our financial strength
  • Estimated adjusted EBIT impact of Covid-19 modelling in FY20 unchanged at £12m to £18m per month
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 6 months
ended
31 March
2020 £m
28 weeks
ended
14 April
2019 £m
% change
Actual
Exchange
Rate
% change
constant exchange rate
and prior year
to 31 March *
Revenue698.8769.2(9.1%)1.4%

Adjusted EBIT

75.783.7(9.6%)9.4%

Adjusted EBIT margin

10.8%10.9%(10) bps80 bps

Adjusting EBIT Items

12.927.553.1% 

Statutory EBIT

62.856.211.7% 

Profit after tax

38.934.911.5% 

Basic EPS

14.7p13.2p11.4% 

Adjusted EPS

19.0p22.3p(14.8%)2.7%**

Interim dividend per share

8.3p 
Adjusted net debt/EBITDA2.5x2.4x(0.1x) 

* Adjusted for constant currency and restatement of prior year to 31 March 2019. Adjusting items includes acquisition related amortisation of £4.8m, impairment charge relating to the Counterpoint business of £8.5m and other adjusting items of £0.4m (more detail provided on page 31. ** Adjusted for restatement of prior year to 31 March 2019 at actual exchange rate.

Simon Litherland, Chief Executive Officer commented:

“The world is a very different place from the one it was a few months ago and I am proud and humbled by the resilience and dedication shown by the entire Britvic team. Our priorities throughout the Covid-19 pandemic have been clear: protect our employees, deliver for our customers, support our communities and maintain our financial strength.

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We entered the Covid-19 crisis with strong momentum, having delivered a robust first half performance, which continues our track record of consistent delivery since 2013. As a business and as a team, we have repeatedly demonstrated our agility as well as our ability to successfully navigate tough headwinds. While these times are clearly unparalleled, soft drinks has proven itself to be a resilient category time and time again. As consumers increasingly turn to trusted brands, we are confident that our long-term strategy will continue to create value for all our stakeholders.”

For further information please contact:

Investors: 
Joanne Wilson (Chief Financial Officer)+44 (0) 7881 751550
Steve Nightingale (Director of Investor Relations)+44 (0) 7808 097784
Media: 
Stephanie Macduff-Duncan (Head of Corporate Communications)+44 (0) 7808 097680
Stephen Malthouse (Headland)+44 (0) 7734 956201

There will be a webcast of the presentation given today at 09:00am by Simon Litherland (Chief Executive Officer) and Joanne Wilson (Chief Financial Officer). The webcast will be available at www.britvic.com/investors with a transcript available in due course.

For the full announcement please click here



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