Britvic plc (LON: BVIC) has delivered preliminary results for the 52 weeks ended 29th September 2019.
Group Financial Headlines:
· Revenue increased 1.4%* (reported +2.8%) to £1,545.0m
· Adjusted EBIT increased 4.4%* (reported +3.9%) to £214.1m
· Adjusted EBIT margin increased 40bps* (reported +20bps)
· Profit after tax decreased 30.9% to £80.9m, due to adjusting items of £84.6m, including write down of France assets
· Adjusted earnings per share increased 6.2% to 59.8p, enabling 6.4% increase in full year dividend
· Significant improvement in adjusted FCF, an increase of £51.0m to £116.0m
Strategic highlights:
· Strong GB performance with both Britvic and PepsiCo brands in revenue growth
· Business Capability Programme completed, cost savings delivery earlier than previous guidance
· Six consecutive quarters of revenue growth in Brazil, driven by innovation and increased distribution
· Proposed exit from private label juice in France to focus on brands, and confirmed exit from Fruit Shoot multipack in the United States to focus on single serve
· Clear focus on sustainability; signed up to Science Based Targets initiative and confirmed partnership to supply recycled PET in GB and Ireland
| 52 weeks ended 29 September 2019 £m | 52 weeks ended | % change Actual Exchange Rate | % change Constant Exchange Rate (ex-SDIL/SSDT) * | |
| 30 September 2018 £m | ||||
| Revenue | 1,545.00 | 1,503.60 | 2.80% | 1.40% |
| Adjusted EBIT | 214.1 | 206 | 3.90% | 4.40% |
| Adjusted EBIT margin | 13.90% | 13.70% | 20bps | 40bps |
| Adjusting EBIT Items | 84.1 | 39.9 | -110.80% | |
| Statutory EBIT | 130 | 166.1 | -21.70% | |
| Profit after tax | 80.9 | 117.1 | (30.9%) | |
| Basic EPS | 30.6p | 44.4p | -31.10% | |
| Adjusted EPS | 59.8p | 56.3p | 6.20% | |
| Full year dividend per share | 30.0p | 28.2p | 6.40% | |
| Adjusted net debt/EBITDA | 2.1x | 2.2x | 0.1x | |
| Adjusted FCF | 116 | 65 | 78.50% |
*Constant exchange rate adjusts for constant currency and excludes the Soft Drinks Industry Levy (SDIL) in GB and the Sugar Sweetened Drinks Tax (SSDT) in Ireland. Adjusting items includes acquisition related amortisation of £10.4m, impairment charge relating to assets held for sale in France of £31.2m and other adjusting items of £42.5m (more detail provided on page 8). Total adjusting items includes £0.5m in finance costs.
Simon Litherland, Britvic plc Chief Executive Officer commented:
“I am pleased to report that Britvic has once again delivered a strong performance, with good momentum in our key brands and categories. In 2019 we have increased revenue, adjusted margin and EBIT, as well as significantly improving free cashflow generation. Our commercial execution, innovation agenda and revenue management continue to deliver results. Our transformational business capability programme is now complete – and importantly forms a key part of our broader commitment to building a more flexible and sustainable business model going forward.
Building on this strong platform, I am confident that Britvic is well placed to capitalise on the future growth opportunities in the years ahead. While we anticipate conditions to remain challenging, we fully expect that we will make further progress in 2020.”
