FDBusiness.com

Strong First Half From Britvic

 Breaking News
  • Diageo Launches New Super-premium Gin Diageo is introducing a new super-premium Italian gin, Villa Ascenti. The launch comes at a time when the super-premium and ultra-premium gin categories are the fastest growing segment within gin in Europe. Villa Ascenti will initially be available in 14 European countries. A new €420,000 (£360,000) distillery has been built on the site of the brand [...]...
  • European Commission Proposes to Increase Price Transparency in the Food Chain Having banned unfair trading practices and improved producer co-operation, the European Commission has presented the third element to improve fairness in the food supply chain by introducing greater transparency in the way prices are reported throughout the chain. The European Commission has tabled a proposal that will make available crucial information on how prices are determined [...]...
  • Irish Distillers Launches ‘A Story of Irish Whiskey’ Podcast Series Irish Distillers, Ireland’s leading supplier of spirits and wines and producer of some of the world’s most well-known and successful Irish whiskeys, has launched its first podcast, ‘A Story of Irish Whiskey’. Produced by Last Cast Media, the five-part series is a story of coming together, sharing, conquering markets and how three families, competitors for [...]...
  • C&C Group Increases Revenue by 187.3% to over €1.5 Billion C&C Group, the UK and Ireland drinks production and distribution business, increased net revenue by 187.3% to €1.575 billion in 12 months ended 28 February 2019, reflecting the acquisition of Matthew Clark and Bibendum from the administrators of Conviviality Group in April 2018. Excluding Matthew Clark and Bibendum, and on a constant currency basis, net [...]...
  • 2 Sisters Accelerates Business Transformation 2 Sisters Food Group has announced a series of actions as part of its accelerating transformational strategy to turnaround the business. The company is making further investments in its UK Poultry and Fox’s Biscuits businesses, and is proposing to reduce the number of its UK Poultry sites in order to produce shorter, more efficient supply [...]...

Strong First Half From Britvic

Strong First Half From Britvic
May 24
12:09 2018

Britvic, one of the leading branded soft drinks businesses in Europe and the largest supplier of branded still soft drinks in Great Britain and the number two supplier of branded carbonated soft drinks, has reported a 4.5% increase in revenue to £733.2 million, with organic growth of 2.8%, for the 28 weeks ended 15 April 2018, compared to the corresponding period last year. Adjusted EBIT increased by 9.4% to £80.5 million and adjusted EBIT margin rose by 50bps. Organic adjusted EBIT margin, on a constant currency basis, improved by 40bps.

During the first half, Britvic sold over 1.2 billion litres of soft drinks, an increase of 3.6% on the previous year, with ARP (Average Realised Price) of 57.4p, increasing by 0.5% on a constant currency basis. Profit after tax decreased 13.7% to £33.3 million, including £21.6 million of planned costs primarily related to the business capability programme (BCP), which is designed to build a platform for future growth.

The company is also entering the soft drinks industry levy environment in Great Britain with strong momentum, with its Robinsons brand back in growth and Pepsi MAX continuing to outperform a highly competitive cola category.

Britvic is continuing to make good progress with its business capability programme (BCP). It is anticipated that the full cost benefits guidance of a minimum 15% EBITDA return will be fully realised from 2020. Upon completion, the production network in Great Britain will comprise of three sites located along the spine of the country in London, Rugby, and Leeds. This will increase efficiency and reduce road miles, and also help accelerate Britvic’s ability to respond to changing consumer trends with agility and pace by expanding its range of liquids, pack sizes and configurations. The programme is already delivering both cost and commercial benefits, for example the 3 litre PET and 250ml slim line can that are now in trade.

Operationally Britvic anticipates that the final phase will now end with the closure of the Norwich factory in late 2019. The Leeds and London sites’ work have been completed and the new lines and warehousing are now fully operational. The year ahead involves the installation of three new PET lines, an aseptic line, a combined heat and power (CHP) plant and completion of the high-bay warehouse at Rugby. Britvic is now in the final year of elevated capital spend for the BCP. In 2019 capital spend will drop to a much lower level, significantly improving free cash flow generation.

Simon Litherland, chief executive of Britvic, comments: “We have delivered a strong first half performance with solid revenue, margin and earnings growth. We have also made good progress in innovating to meet consumer needs, growing our international presence and transforming our supply chain. While it is too soon to guide on the ongoing consumer impact of the soft drinks levy, early indications of the competitor and customer response are broadly as we anticipated. We have exciting commercial plans in place for the second half and I remain confident of continuing to make progress this year.”

In addition to its strong position within the soft drinks market in Great Britain, Britvic is an industry leader in Ireland, in France and in Brazil. Britvic is also growing its reach into other territories through franchising, export and licensing.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
  • June 25, 2019BevExpo 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements