Britvic plc 2020 Preliminary results

26 Nov 2020

“Disciplined management of the near-term challenges, confident in future growth prospects”
For the year ended 30 September 2020

Group Financial Headlines:

  • Revenue decreased 6.8%* to £1,412.4m (reported -8.6%)
  • Adjusted EBIT decreased 21.9%* to £165.8m (reported -22.6%),
  • Adjusted EBIT margin -230bps* to 11.7% (reported -220bps)
  • Profit after tax increased 16.9% to £94.6m
  • Adjusted earnings per share decreased 27.8%* to 43.2p
  • Disciplined cash management enabling a £45.8m reduction in adjusted net debt
  • Full year dividend of 21.6p confirmed, maintaining a 50% pay-out ratio

Strategic Headlines:

  • Extended carbonates relationship with PepsiCo in GB to 2040
  • Increasing participation in the energy category, adding PepsiCo’s Rockstar to the portfolio alongside Purdey’s
  • Announced intent to use 100% recycled PET (rPET) bottles across the GB brand portfolio by end of 2022
  • Sale of juice factories and private label contracts in France completed

Operational Headlines:

  • Successfully delivered on our priorities through the pandemic
  • Revenue +7.4% in H2 for flavour concentrates portfolio as consumers turn to trusted brands
  • Revenue growth and market share gain in GB At-Home channel, partly offsetting COVID-19 impact on Out-of-Home channel
  • Double digit revenue growth and market share gain in Brazil driven by both core brands and innovation
  • Robust balance sheet and confident of liquidity position
 Year ended         
30 September 2020 
£m
52 weeks ended         
29 September 2019      
£m
% change       
Actual    
Exchange Rate
% change     
Constant Exchange
Rate*
Revenue1,412.41,545.0(8.6%)(6.8%)
Adjusted EBIT165.8214.1(22.6%)(21.9%)
Adjusted EBIT margin11.7%13.9%(220)bps(230)bps
Adjusting EBIT Items**35.584.157.8%
Statutory EBIT130.3130.0(0.2%)
Profit after tax94.680.916.9%
Basic EPS35.6p30.6p16.3%
Adjusted EPS43.2p59.8p(27.8%)
Final dividend per share21.6p30.0p(28.0%)
Adjusted net debt/EBITDA2.4x2.1x0.3x
More:  Britvic PLC 2020 Interim results

* Adjusted for constant currency. **Adjusting items are defined on page 33 and include strategic restructuring costs of £12.9m, acquisition related amortisation of £8.8m, acquisition and disposal costs of £5.0m and an impairment charge relating to the Counterpoint business of £8.4m (more detail provided on page 9). Total adjusting items includes £0.2m in finance costs

Simon Litherland, Chief Executive Officer commented:
“While none of us would have wished for the challenging circumstances 2020 has brought, I am very proud of how we have responded as a business and delivered on the priorities we set ourselves at the start of the pandemic. Our determined and dedicated people, portfolio of trusted brands, strong commercial relationships and operational agility mean we have performed strongly where we have been able to compete. We also continue to navigate the changing landscape successfully. So, even though out-of-home trading has inevitably been impacted, we have continued to gain market share in our key growth markets of GB and Brazil, and we have successfully protected cash and our overall financial strength.

At the same time, we have also made considerable progress executing our strategy and we are well positioned to drive future growth and returns. We have extended our GB carbonates relationship with PepsiCo to 2040 and expanded our presence in the energy category through the addition of their Rockstar brand. We have accelerated our sustainable business commitments and completed the disposal of non-core assets in France, which will result in more focus on growing our higher margin brands there. While 2021 will bring continued uncertainty, it also presents real opportunity for Britvic to capitalise on the trends which have accelerated as a result of the pandemic. We are confident that we will continue to react with agility and pace as events unfold. Soft drinks has repeatedly proved itself to be a highly resilient category, and we fully intend to be at the forefront of its recovery.”

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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 09:30am 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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