TIDMBVIC
RNS Number : 0344V
Britvic plc
23 October 2014
Britvic plc ("Britvic") 52 Week Trading Update to 28 September
2014
All numbers and comparisons are quoted pre-exceptional and on a
constant exchange rate basis, unless otherwise stated.
Britvic today reports its full year trading update ahead of the
preliminary results release on 26 November. Full year revenue
increased by 2.4%, with both volume and price growth, and the
strategic cost initiatives were successfully implemented with a
slightly higher in-year benefit than anticipated. As a result we
now expect that full year EBIT will be marginally ahead of the top
end of our previous guidance range of GBP148m to GBP156m and well
ahead of last year.
Q4 performance
As expected Q4 group revenue declined, down 4.0% on the previous
year, against a strong comparator in 2013 when Q4 revenue grew by
12.8%. Q4 revenue of GBP344.2m includes seven less trading days in
Ireland than the previous year and when adjusted for this, the like
for like revenue decline was 3.1%.
In each of our European markets the soft drinks category
declined in Q4 as a result of poor weather, particularly in July
and August. Retail conditions remained largely unchanged as
consumers continued to focus on value and managing household
expenditure tightly.
The Fruit Shoot line commissioning delay that impacted both
International and France in Q3 was successfully resolved early in
Q4. The International business made strong progress this quarter
with the continued roll-out of Fruit Shoot across the USA and the
launch in India.
GB Q4 revenue declined 2.1% (Full Year +3.0%) whilst the
take-home soft drinks market value declined 3.9% in the quarter. GB
carbonates revenue increased 0.2% with an ARP increase of 3.8%
offsetting a volume decline of 3.7%, whilst the take-home
carbonates category value declined 3.0%. In a competitive market
Pepsi continued to gain market value share with multi-pack cans and
small PET performing particularly well. GB stills revenue declined
5.8%, whilst the category take-home value, excluding water,
declined 7.4%. Britvic's revenue performance reflects a volume
decline of 14.0%, partially offset by ARP growth of 9.5%. The
launch of Robinsons Squash'd had a materially positive impact on
ARP. The GB stills prior year revenue growth was particularly
strong at +23.2%, across all our major brands.
Ireland Q4 revenue(1) declined 5.2% on a like for like basis
(-13.8% reported) (Full Year -4.5%) whilst the take-home soft
drinks market value declined by 6.1%. Underlying trading conditions
remained challenging and the carbonates and plain water categories
were particularly competitive. Overall volume declined 6.3% (-15.3%
reported) whilst ARP increased by 0.4% (+1.1% reported). The
licensed wholesale market has been challenging, with the revenue
decline driven primarily by third party brands. The reported number
for Q4 includes seven less trading days in Ireland this year, which
was the main reason for the significant fall in reported
revenues.
France Q4 revenue(2) declined 12.0% (Full Year +1.2%). Last year
Q4 revenue grew 13.5%, with syrups in particular benefiting from
the exceptionally warm weather. The notably cooler summer this year
has resulted in a significant decline for syrups in the quarter,
with category volumes down double-digit. The decline in syrups also
had a negative impact on price/mix. Fruit Shoot has continued to
grow and is now the number one brand, by value, in the
category.
International Q4 revenue(2) increased by 35.2% (Full Year
+16.9%) The roll-out of Fruit Shoot singles across all 50 states in
the USA and the launch in India have contributed to a significant
growth in concentrate sales this quarter. The second manufacturing
line in St Louis is now fully operational.
Simon Litherland, Chief Executive, commented:
"We have delivered a strong performance despite the poorer
summer weather and the continued challenging trading environment.
We now expect operating profit marginally ahead of the top end of
the guidance range we outlined at the start of the year. Full year
revenue grew 2.4% and the accelerated delivery of our strategic
cost initiatives pulled the in-year savings ahead of our original
plan. I am especially pleased that we have delivered a strong set
of results, with profits well ahead of last year, at the same time
as undertaking a significant internal change programme. We are now
set up to take advantage of the growth opportunities ahead of
us.
We anticipate that the prevailing challenging market conditions
will continue for some time. Nevertheless, we look forward with
confidence to further earnings growth in 2015, as we realise the
full year benefit of the cost initiatives and execute our extensive
innovation and marketing plans for the year. We will share more
details of this in our preliminary results in November."
1. The Irish business unit has changed its accounting period as
part of the integration with the GB division. The business has
moved from a monthly to a 4 weekly accounting cycle and as a
consequence, Q4 reported 7 days less trading compared to last year.
Prior year has not been restated to reflect this.
2. France export volume and revenue is now managed and accounted
for in the International business unit. Prior year in both France
and International has been restated to reflect this.
For further information please contact:
Investors:
Rupen Shah (PLC Finance and Investor Relations Director) +44 (0) 1442 284330
Steve Nightingale (Senior Investor Relations Manager) +44 (0)
1442 284330
Media:
Susan Turner (Director of Corporate Affairs) +44 (0) 7808
098579
Ben Foster/Lindsay Noton (Pendomer Communications) +44 (0) 203 603 5220
Notes to editors
About Britvic
Britvic is one of the leading branded soft drinks businesses in
Europe. The company leverages its own leading brand portfolio
including Robinsons, Tango, J(2) O, Fruit Shoot, Teisseire and
MiWadi with PepsiCo brands such as Pepsi, 7UP and Mountain Dew
Energy which Britvic produces and sells in GB and Ireland under
exclusive PepsiCo agreements.
Britvic is the largest supplier of branded still soft drinks in
Great Britain ("GB") and the number two supplier of branded
carbonated soft drinks in GB. Britvic is an industry leader in the
Island of Ireland with brands such as MiWadi and Ballygowan, and in
France with brands such as Teisseire and Fruité. Britvic is growing
its reach into other territories through franchising, export and
licensing. Britvic's management team has successfully developed the
business through a clear strategy of organic growth and
international expansion based on creating and building scale
brands. Britvic is listed on the London Stock Exchange under the
code BVIC and is a constituent of the FTSE 250 index.
Cautionary note regarding forward-looking statements
This announcement includes statements that are forward-looking
in nature. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the group to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Except as
required by the Listing Rules and applicable law, Britvic
undertakes no obligation to update or change any forward-looking
statements to reflect events occurring after the date such
statements are published.
Quarter Four ("Q4") reporting period
Britvic GB, Ireland and Britvic International's fourth-quarter
period runs from 7 July to 28 September 2014. Britvic France and
Counterpoint covers the period from 1 July to 30 September 2014.
Britvic Ireland's volume and ARP exclude the sale of third-party
factored brands through the Counterpoint wholesale business.
Market Data
GB take-home market data referred to in this announcement is
supplied by Nielsen and runs to 27 September 2014. ROI take-home
market data referred to in this announcement is supplied by Nielsen
and runs to 7 September 2014. French market data is supplied by IRI
and runs to 21 September 2014.
Next Scheduled Announcement
Britvic will publish its Preliminary results on 26 November
2014.
Britvic revenue, volume and ARP
Actual Actual Constant
exchange rate exchange rate
------------------------ ----------------
% change on % change on
last year last year
------------------------ ------ -------- ----------------- -----------------
Q4 YTD Q4 YTD Q4 YTD
------------------------ ------ -------- --------- ------ --------- ------
Revenue GBPm
------------------------ ------ -------- --------- ------ --------- ------
GB Carbonates 144.2 567.8 0.2% 5.9% 0.2% 5.9%
------------------------ ------ -------- --------- ------ --------- ------
GB Stills 85.9 335.2 -5.8% -1.4% -5.8% -1.4%
------------------------ ------ -------- --------- ------ --------- ------
GB Total 230.1 903.0 -2.1% 3.0% -2.1% 3.0%
------------------------ ------ -------- --------- ------ --------- ------
International 17.3 58.2 31.1% 15.7% 35.2% 16.9%
------------------------ ------ -------- --------- ------ --------- ------
Ireland 33.0 128.3 -18.5% -6.3% -13.8% -4.5%
------------------------ ------ -------- --------- ------ --------- ------
France 63.8 254.9 -17.8% -1.3% -12.0% 1.2%
------------------------ ------ -------- --------- ------ --------- ------
GROUP 344.2 1,344.4 -6.1% 1.7% -4.0% 2.4%
------------------------ ------ -------- --------- ------ --------- ------
Average Realised Price
("ARP") PPL
------------------------ ------ -------- --------- ------ --------- ------
GB Carbonates 48.6 47.1 3.8% 1.3% 3.8% 1.3%
------------------------ ------ -------- --------- ------ --------- ------
GB Stills 93.3 88.5 9.5% 3.8% 9.5% 3.8%
------------------------ ------ -------- --------- ------ --------- ------
GB Total 59.2 57.0 4.4% 0.9% 4.4% 0.9%
------------------------ ------ -------- --------- ------ --------- ------
International 136.2 131.4 15.5% 12.9% 19.2% 14.0%
------------------------ ------ -------- --------- ------ --------- ------
Ireland 55.4 54.1 -4.3% -4.8% 1.1% -2.9%
------------------------ ------ -------- --------- ------ --------- ------
France 97.0 93.2 -7.4% -1.8% -0.8% 0.6%
------------------------ ------ -------- --------- ------ --------- ------
GROUP 65.6 63.0 1.9% 0.3% 4.0% 1.0%
------------------------ ------ -------- --------- ------ --------- ------
Volume - m litres
------------------------ ------ -------- --------- ------ --------- ------
GB Carbonates 296.5 1,204.7 -3.7% 4.4% -3.7% 4.4%
------------------------ ------ -------- --------- ------ --------- ------
GB Stills 92.1 378.9 -14.0% -5.0% -14.0% -5.0%
------------------------ ------ -------- --------- ------ --------- ------
GB Total 388.6 1,583.6 -6.3% 2.0% -6.3% 2.0%
------------------------ ------ -------- --------- ------ --------- ------
International 12.7 44.3 13.4% 2.5% 13.4% 2.5%
------------------------ ------ -------- --------- ------ --------- ------
Ireland 49.1 197.0 -15.3% -1.0% -15.3% -1.0%
------------------------ ------ -------- --------- ------ --------- ------
France 65.8 273.6 -11.2% 0.6% -11.2% 0.6%
------------------------ ------ -------- --------- ------ --------- ------
GROUP 516.2 2,098.5 -7.5% 1.5% -7.5% 1.5%
------------------------ ------ -------- --------- ------ --------- ------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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