“Robust start to the year, well-placed to navigate the challenges of Covid-19”
For the 26 weeks ended 31 March 2020 compared to 28 weeks ended 14 April 2019
Group Financial Headlines:
- Reported comparisons to last year reflect 2 weeks less trading in 2020 due to change to monthly reporting
- Restated comparisons included to enable like-for-like performance comparison
- Revenue increased 1.4%* to £698.8m (reported -9.1%)
- Adjusted EBIT increased 9.4%* to £75.7m (reported -9.6%)
- Adjusted EBIT margin +80bps* to 10.8% (reported -10bps)
- Profit after tax increased 11.5% to £38.9m
- Adjusted earnings per share increased 2.7%** to 19.0p (reported -14.8%)
- While confident of liquidity, Board prudently defers dividend decision to later in year, when impact of Covid-19 will be clearer
Strategic Headlines:
- Robust start to the year, with value share gains in GB, Ireland and Brazil
- Revenue growth led by local favourites - Robinsons, MiWadi, Maguary, Pepsi, Tango and 7UP
- Since mid-March, government restrictions on general people movement and on trading activity in the hospitality industry have significantly impacted Out-of-Home, including on-the-go consumption. Packs for At-Home consumption have increased in volume driving an adverse pack mix
- Stress tests underpin confidence in liquidity position and covenant compliance for the next 18 months
Covid-19 Response:
- Entered this period from a position of strength with a solid balance sheet and trading momentum
- Clear set of priorities established - Safeguarding our people; Maintaining operational agility; Supporting our communities; and Retaining our financial strength
- Estimated adjusted EBIT impact of Covid-19 modelling in FY20 unchanged at £12m to £18m per month
| 6 months ended 31 March 2020 £m |
28 weeks ended 14 April 2019 £m |
% change Actual Exchange Rate |
% change constant exchange rate and prior year to 31 March * |
|
|---|---|---|---|---|
| Revenue | 698.8 | 769.2 | (9.1%) | 1.4% |
|
Adjusted EBIT |
75.7 | 83.7 | (9.6%) | 9.4% |
|
Adjusted EBIT margin |
10.8% | 10.9% | (10) bps | 80 bps |
|
Adjusting EBIT Items |
12.9 | 27.5 | 53.1% | |
|
Statutory EBIT |
62.8 | 56.2 | 11.7% | |
|
Profit after tax |
38.9 | 34.9 | 11.5% | |
|
Basic EPS |
14.7p | 13.2p | 11.4% | |
|
Adjusted EPS |
19.0p | 22.3p | (14.8%) | 2.7%** |
|
Interim dividend per share |
- | 8.3p | - | |
| Adjusted net debt/EBITDA | 2.5x | 2.4x | (0.1x) |
* Adjusted for constant currency and restatement of prior year to 31 March 2019. Adjusting items includes acquisition related amortisation of £4.8m, impairment charge relating to the Counterpoint business of £8.5m and other adjusting items of £0.4m (more detail provided on page 31. ** Adjusted for restatement of prior year to 31 March 2019 at actual exchange rate.
Simon Litherland, Chief Executive Officer commented:
“The world is a very different place from the one it was a few months ago and I am proud and humbled by the resilience and dedication shown by the entire Britvic team. Our priorities throughout the Covid-19 pandemic have been clear: protect our employees, deliver for our customers, support our communities and maintain our financial strength.
We entered the Covid-19 crisis with strong momentum, having delivered a robust first half performance, which continues our track record of consistent delivery since 2013. As a business and as a team, we have repeatedly demonstrated our agility as well as our ability to successfully navigate tough headwinds. While these times are clearly unparalleled, soft drinks has proven itself to be a resilient category time and time again. As consumers increasingly turn to trusted brands, we are confident that our long-term strategy will continue to create value for all our stakeholders.”
For further information please contact:
There will be a webcast of the presentation given today at 09:00am 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.