Q3 trading statement 2017

“Strong execution, on-track to achieve current market expectations”

All numbers quoted are on a constant currency basis and before exceptional and other items, unless otherwise stated.

Britvic today reports third quarter revenue of £384.6m, an increase in constant currency of 6.5% on the prior year. Volume in the period increased by 2.3% and ARP increased 2.9%. Organic revenue, excluding the recent acquisition of Bela Ischia, increased 4.5% with volume and ARP ahead of the prior year.

Simon Litherland, Chief Executive, commented:

“Our business is in good shape, we have continued to execute our strategic priorities and deliver a robust performance, whilst taking proactive action to successfully mitigate external headwinds. Trading in the third quarter has been strong with group volumes, ARP and revenue ahead of last year, driven by a range of factors including our focus on growth channels, successful revenue management, delivery of our business capability programme and favourable weather. Looking ahead to the full year, we remain confident that EBITA will be in line with current market expectations despite challenging comparatives for the fourth and largest quarter and a mixed economic backdrop.”

Quarter Three Highlights

GB revenue increased 4.9%, with volume growth of 3.4% and ARP growth of 1.5%. Whilst our grocery performance was subdued, we grew strongly in the convenience and on-trade channels. GB carbonates revenue increased 7.6%, led by Pepsi Max and R Whites, with volume growth of 2.7% and ARP growth of 4.9%. GB stills revenue declined 0.4% with volume growth of 5.7%, offset by an ARP decline of 5.8%. Both Robinsons and Fruit Shoot volumes increased, but pricing was weaker due to aggressive competition in grocery.

France revenue increased 11.0% with volume growth of 3.9% and an ARP increase of 6.8%. The continued growth of our brands ahead of private label and positive brand mix resulted in improved average realised price. In the quarter, the syrups range benefited from very warm weather and Fruit Shoot continued to build its category leading position.

Ireland revenue increased 10.6%, driven by our wholesale business Counterpoint, which also benefited from the recent acquisition of East Coast Suppliers. Branded volumes, which exclude wholesale, declined 2.4% as we lapped a large comparable period.

We continue to internationalise our business and invest for future growth. International revenue was flat in the quarter, with USA Fruit Shoot multipack continuing to grow but singles adversely affected by the phasing of shipments of concentrate. Performance in Benelux was subdued as we continued to focus on improving product mix and margin.

As previously indicated, market conditions in Brazil remained challenging. Our brands have continued to take share and the roll-out of Fruit Shoot continues to gain momentum, benefiting from the combined geographical footprint of Ebba and Bela Ischia. Integration is progressing well and we remain on track to deliver a minimum $R10m of cost savings in 2018. Organic revenue, excluding Bela Ischia, declined 22.5% against a +37% comparable increase last year.

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 THREE (“Q3”) REPORTING PERIOD

Britvic GB, Ireland and Britvic International’s third-quarter period runs from 17 April to 9 July 2017. Britvic France, Britvic Brazil and Counterpoint cover the period from 1 April to 30 June 2017. Please note that Britvic Ireland’s volume and ARP exclude the sale of third-party factored brands through Counterpoint. 

MARKET DATA

GB take-home market data referred to in this announcement is supplied by Nielsen and runs to 8 July 2017. ROI take-home market data is supplied by Nielsen and runs to 18 June 2017. French market data is supplied by IRI and runs to 25 June 2017.

NEXT SCHEDULED ANNOUNCEMENT

Britvic will release its preliminary results on 29 November 2017.

NOTES TO EDITORS

BRITVIC REVENUE, VOLUME AND AVERAGE REALISED PRICE (ARP)