“Another strong performance driven by the continued execution of our strategy”
Group Financial Headlines:
- Revenue increased 5.1% to £1,503.6m with organic revenue** up 2.7%
- Adjusted EBIT increased 5.4% with organic adjusted EBIT* up 4.0% to £206.0m
- Organic adjusted EBIT margin* increased 10bps
- Profit after tax increased 4.9% to £117.1m
- Adjusted earnings per share* increased 6.4% to 56.3p and the full year dividend increased 6.4%
Strategic highlights:
- Positive volume and price/mix delivering balanced revenue growth
- Successfully navigating soft drinks levy, underpinned by strength of low/no sugar portfolio
- GB stills revenue in growth and Pepsi, led by MAX, continued to gain share
- Revenue from Britvic brand innovation at an all-time high
- Successfully managed the carbon dioxide shortage in GB and Ireland and market challenges in France
- Robust performance in Brazil despite challenging macro-economic conditions, Bela Ischia synergies delivered
- Business Capability Programme on-track, contributing to continued margin expansion
| 52 weeks ended 30 September 2018 £m |
52 weeks ended 1 October 2017 £m Restated |
% change Actual Exchange Rate |
% change Organic Constant Exchange Rate (ex-SDIL/SSDT)** |
|
|---|---|---|---|---|
| Revenue | 1,503.6 | 1,430.5 | 5.1% | 2.7% |
| Adjusted EBIT* | 206.0 | 195.5 | 5.4% | 4.0% |
| Adjusted EBIT margin* | 13.7% | 13.7% | 0bps | 10bps |
| Profit after tax | 117.1 | 111.6 | 4.9% | |
| Basic EPS | 44.4p | 42.4p | 4.7% | |
| Adjusted EPS* | 56.3p | 52.9p | 6.4% | |
| Full year dividend per share | 28.2p | 26.5p | 6.4% | |
| Adjusted net debt/EBITDA | 2.2x | 2.0x | (0.2)x |
In the current period acquisition related amortisation has been included within adjusting items in order to simplify the Group’s financial reporting. This has resulted in adjusted EBIT replacing adjusted EBITA as one of the Group’s KPIs. This however in practice has no impact on the amounts reported due to the reclassification of acquisition related amortisation. Throughout this report, where relevant, 2017 comparatives have been restated for IFRS15: Revenue from contracts with customers. Full details of this restatement can be found on pages 27 to 28. * Items marked with an asterisk throughout this document are non-GAAP measures, definitions and relevant reconciliations are provided in the Glossary on page 10 and pages 29 to 31. ** Organic constant exchange rate adjusts for constant currency, the impact of Bela Ischia for the period to 2 March 2018 and excludes the Soft Drinks Industry Levy (SDIL) in GB and the Sugar Sweetened Drinks Tax (SSDT) in Ireland. Detailed adjustments are shown on page 30.
Simon Litherland, Chief Executive Officer commented:
“We have delivered a strong performance in a challenging environment, with good revenue, margin and earnings growth. I am delighted that we have grown our stills brands, demonstrating that our investment in innovation and marketing is beginning to pay off. The investment in the transformational business capability programme is now nearing completion and is already delivering significant efficiency and commercial benefits. Free cash flow will increase materially in 2019 as capital spend falls back towards normal levels.
Britvic has consistently demonstrated that we are a strong, agile business, operating in a resilient category. In 2019 we have exciting plans for our portfolio of leading brands across our markets. Whilst political and economic uncertainty will undoubtedly continue, we are confident we will continue our long-term track record of growing earnings, dividends and shareholder value.”
There will be a live webcast of the presentation given today at 09:30am by Simon Litherland (Chief Executive Officer) and Mathew Dunn (Chief Financial Officer). The webcast will be available at www.britvic.com/investors with a transcript available in due course.