FDBusiness.com

Britvic, the UK-based soft drinks group, has reported a 7.7% increase in revenue to £1.541 billion for the 52 weeks ended 1 October 2017, compared to the previous year. On an organic constant currency basis, revenue rose by 2.5%. During the period, Britvic sold over 2.3 billion litres of soft drinks, an increase of 1.2% on the previous year, with Average Realised Price (ARP) of 63.3p, increasing by 1.6% on a constant currency basis.

Adjusted EBITA increased by 5.1% to £195.5 million, and adjusted EBITA margin decreased 30bps. Organic adjusted EBITA margin, on a constant currency basis, increased by 30bps. Profit after tax decreased by 2.5% to £111.6 million, including £24.7 million of planned costs related to the Business Capability Programme. The results reflect successful management of cost inflation through disciplined revenue management and cost control.

Britvic’s innovation programme continues to deliver and now generates 5.4% of total revenue – up from 4.0% in the 2016 financial year. Britvic is also successfully internationalising its business. Following completion of the Bela Ischia and East Coast acquisitions, 41% of group revenue is now generated outside of Great Britain.

Currently two years into its three years Business Capability Programme, Britvic made significant progress during the past twelve months, delivering £8 million in-year benefits, including £3 million from the investment in its GB supply chain, ahead of previous guidance.

Simon Litherland, chief executive of Britvic.

Britvic’s Leeds site is close to completion, with both the big and small PET lines up and running and the automation of the new warehouse due for completion in the coming months. The London site is now fully operational with a new flexible PET line and on-site warehouse completed. At Rugby, Britvic has installed three new can lines and started the groundworks for the new warehouse and aseptic line that will come on-stream next year.

Simon Litherland, chief executive of Britvic, comments: “Britvic has again demonstrated the resilience of our business, delivering another strong set of results. We have grown both organic revenue and margins whilst continuing to progress our strategic priorities. I am particularly encouraged that we have increased the proportion of revenue generated from innovation and accelerated the returns from the business capability programme.”

He elaborates: “While April 2018 brings uncertainty with the introduction of the Soft Drinks Industry Levy in GB and Ireland, we are well placed to navigate it thanks to the strength and breadth of our brand portfolio and our exciting marketing and innovation plans. This, combined with our continued focus on revenue and cost management, means we remain confident of making further progress next year.”