Britvic plc Interim Results – 18 May 2021
“Emerging stronger, confident in future growth prospects”
For the 6 months ended 31 March 2021
Group Financial Headlines:
- Revenue decreased 6.3%* to £617.1m (reported -11.7%)
- Adjusted EBIT decreased 15.4%* to £60.1m (reported -20.6%), statutory EBIT declined 16.7%
- Adjusted EBIT margin decreased 110bps* to 9.7% (reported -110bps)
- Profit after tax decreased 14.7% to £33.2m
- Adjusted earnings per share decreased 20.0%* to 15.2p, basic EPS declined 15.6% to 12.4p
- Disciplined cash management with adjusted net debt £94.3m lower year-on-year and adjusted net debt / EBITDA leverage ratio peaking at 2.8
- Reinstating our interim dividend with a dividend of 6.5p
Highlights:
Strong growth in At-Home channels, resulting in continued share gains in GB and Brazil
- Britvic GB At-Home channel RSV +6.2% vs soft drinks market +1.6%; led by family favourites Robinsons, Pepsi MAX, 7UP and Grocery online outpacing strong market growth
- Into the 4th consecutive year of revenue growth in Brazil
Pandemic restrictions heavily impacted performance in hospitality sector and on-the-go consumption
Significant progress against our strategic objectives including:
- Relaunch of Rockstar in H2 to accelerate growth in the energy category
Acquisition of Plenish, a premium plant-based beverages brand in a fast-growing category
Simplification of Ireland business with closure of Counterpoint wholesale
Healthier People, Healthier Planet progress including supporting UK government Kickstart employment initiative and implementation of 100% rPET underway in GB
Current Trading & Outlook:
- Encouraging trading in the first weeks of H2 as lockdown measures begin to ease in the UK
- Investment to ramp up in H2 to capitalise on near-term market opportunities and drive long-term growt
- Going forward we anticipate positive mix impact as At-Home growth moderates, socialising increases and on-the-go consumption regains momentum
|
|
6 months ended 31 March 2021 £m |
6 months ended 31 March 2020 £m |
% change actual exchange rate (AER) |
Underlying % change constant exchange rate * |
|
Revenue Adjusted EBIT Adjusted EBIT margin Adjusting EBIT Items** Statutory EBIT Statutory EBIT margin Profit after tax Basic EPS Adjusted EPS Interim dividend per share Adjusted net debt/EBITDA |
617.1 60.1 9.7% 7.8 52.3 8.5% 33.2 12.4p 15.2p 6.5p 2.8x |
698.8 75.7 10.8% 12.9 62.8 9.0% 38.9 14.7p 19.0p – 2.5x |
(11.7)% (20.6)% (110)bps 39.5% (16.7)% (50)bps (14.7)% (15.6)% (20.0)% – (0.3)x |
(6.3)% (15.4)% (110)bps – – – – – – – – |
* Adjust ed for constant currency and excludes the private label juice business that was disposed of in 2020. **Adjusting items are defined on page 31 and include strategic restructuring costs of £3.2m and acquisition related amortisation of £3.9m. Total adjusting items includes £0.2m in finance costs
Simon Litherland, Chief Executive Officer commented:
“In challenging circumstances, we have delivered a robust first half performance, demonstrating the resilience and agility of our business. We have continued to win in the channels open to us and have gained share in our key growth markets of GB and Brazil. Our cash management has been particularly strong, and I am pleased to reinstate our interim dividend.
We have also made good progress on our strategic opportunities, such as simplifying our Irish business, entering the mainstream energy category in GB and Ireland by relaunching Rockstar with PepsiCo, and acquiring Plenish, a leading natural premium brand in the fast growing plant based drinks category.
In the second half we plan to rebuild investment behind our brands to ensure we emerge strongly and are best positioned for the recovery as it evolves. As lockdown restrictions have started to ease in some of our markets, early trading has been encouraging. Although some uncertainty does remain, I am confident that our strategy and focus on People, Planet and Performance will ensure we deliver growth for all our stakeholders, both in the short and long term.”