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 £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 20212 £m |
% change actual exchange rate (AER) |
Underlying % change constant exchange rate1 |
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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.
- 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.
For further information please contact:
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Investors: |
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Joanne Wilson (Chief Financial Officer) |
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Steve Nightingale (Director of Investor Relations) |
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Media: |
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Stephanie Macduff-Duncan (Head of Corporate Communications) |
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Stephen Malthouse (Headland) |
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. To ask a question on the webcast, please dial +0800 279 6877 or +44 (0) 330 165 4012 and enter the confirmation code 7088891.
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 including the COVID-19 pandemic, 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.
Market data
GB take-home market data referred to in this announcement is supplied by Nielsen and runs to 26 March 2022. ROI take-home market data referred to is supplied by Nielsen and runs to 27 March 2022. French market data is supplied by Nielsen and runs to 27 March 2022. Brazil is supplied by Nielsen and runs to 31 March 2022.
Next scheduled announcement
Britvic will publish its Q3 trading statement on 21 July 2022.