Britvic plc Interim Results – 17 May 2022
For the six months ended 31 March 2022
Another strong performance, commencing a £75m share buyback programme
Group Financial Headlines:
- Revenue increased 18.5%1 to £719.3m (reported +16.6%)
- Adjusted EBIT increased 20.7%1 to £73.5m (reported +22.3%), statutory EBIT increased 35.8%
- Adjusted EBIT margin increased 20bps1 to 10.2% (reported +50bps)
- Profit after tax increased 48.7% to £45.8m
- Adjusted earnings per share of 19.4p, up 27.8%
- Interim dividend of 7.8p, up 20.0%
- Adjusted net debt/EBITDA of 2.2x, a reduction of 0.6x on H1 last year
Highlights:
- Double-digit revenue growth, with volume and pricing growth across all business units
– Continued growth in At-Home channels, with Out-of-Home channels recovering back towards pre-COVID levels
– Immediate Consumption volumes ahead of pre-COVID
- Pricing activity, promotional strategy, management of our mix and disciplined cost control has helped to mitigate the impact of inflation
- Good progress against our strategic objectives including:
– Additional production capacity in GB and Brazil now operational
– Strong momentum across our core brands
– Exciting innovation launches with core brand extensions, new flavours and new pack formats
– Accessing new growth spaces – Plenish relaunched and Aqua Libra flavour tap launched
- Continuing to build investment in our people, brands and infrastructure
- Commencing an initial share buyback programme of £75m in the next 12 months, reflecting the strength of our balance sheet and confidence in our growth strategy
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6 months ended 31 March 2022 £m |
6 months ended 31 March 2021 2 £m |
% change actual exchange rate (AER) |
Underlying % change constant exchange rate 1 |
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Revenue Adjusted EBIT Adjusted EBIT margin Adjusting EBIT items 3 Statutory EBIT Statutory EBIT margin Profit after tax Basic EPS Adjusted EPS Interim dividend per share Adjusted net debt/EBITDA |
719.3 73.5 10.2% (6.4) 67.1 9.3% 45.8 17.2p 19.4p 7.8p 2.2x |
617.1 60.1 9.7% (10.7) 49.4 8.0% 30.8 11.6p 15.2p 6.5p 2.8x |
16.6% 22.3% 50bps 40.2% 35.8% 130bps 48.7% 48.3% 27.8% 20.0% 0.6x |
18.5% 20.7% 20bps |
- Adjusted for constant currency,and the Ireland agency brands which ceased trading in March 2021.
- Please refer to note 21 of the interim financial statements for details of SaaS arrangements restatement.
3 . Adjusting EBIT items of £6.4m are detailed on page 33.
Simon Litherland, Chief Executive Officer commented:
“I am delighted with our first half performance. We have accelerated revenue growth across our markets and made good progress against our strategic priorities. We have successfully executed pricing and cost actions to mitigate significant levels of inflation, while continuing to rebuild investment to support our near and longer-term growth ambitions. We continue to generate strong cash flow and have increased the interim dividend by 20%. I am also pleased that today the Board have announced our intention to commence an initial share buyback programme of £75m in the next 12 months, reflecting the strength of our balance sheet and confidence in our growth strategy.
The current geo-political uncertainty is likely to result in continued cost inflation and pressure on consumer spending at least into 2023. I remain confident however that we will continue to successfully navigate the headwinds, thanks to our portfolio of leading brands, strong customer relationships, smart revenue management capability and the resilience of our supply chain and our people. This will enable us to maintain our positive momentum, progress our key performance metrics and strategic priorities, and continue to create value for all our stakeholders.”
This announcement contains inside information related to a share buyback programme.
The person responsible for making this announcement is Clare Thomas, Company Secretary.