“Strong underlying Q3 performance, confident in full year expectations”
All numbers quoted are on a constant currency basis unless otherwise stated. All numbers reflect the adoption of IFRS15 “Revenue from Contracts with Customers”, with prior year restated to enable an accurate comparison of performance.
Britvic today reports third quarter revenue of £366.9m, an increase of 3.4% on a strong comparative prior year number (+4.5%). Revenue excluding the Soft Drinks Industry Levy (SDIL) decreased 0.6% over the third quarter. Year to date reported revenue increased 4.2% (2.8% ex-SDIL) to £1,100.1m.
Simon Litherland, Chief Executive Officer, commented:
“Britvic has delivered a strong underlying performance in the third quarter, through continuing outstanding execution of no sugar carbonates and substantial growth from our stills brands. Whilst the industry-wide shortage of carbon dioxide held back our ability to fully capitalise on the exceptional weather in GB and Ireland, we leveraged the breadth and strength of our portfolio to moderate the impact. Consequently, we remain confident of achieving market expectations for the full year.”
Third Quarter Highlights
- GB revenue increased 8.0% (+1.9% ex-SDIL), with GB carbonates revenue increasing 6.1% (-2.9% ex-SDIL). Pepsi continued to gain share, led by outstanding execution of MAX. There was a well- documented disruption to the supply of carbon dioxide into the UK and Ireland within the period, which impacted the wider food and drink industry, including carbonated soft drinks. To ensure continuity of supply across all trading channels, we temporarily scaled back our promotional activity and reallocated some of our secondary feature space to stills. Supply has now normalised, enabling us to start rebuilding stock levels and gradually reintroduce promotions. GB Stills revenue growth was particularly strong, increasing 11.9% (+11.7% ex-SDIL). Underlying performance continued to improve, led by strong growth for both Robinsons and J20, and further enhanced by the additional display space referenced above.
Since the introduction of the SDIL in April, the soft drinks category has benefited from a prolonged period of unusually warm weather. This, when coupled with the carbon dioxide shortage, makes it difficult to disaggregate the effect of the Levy, and we anticipate having a more informed view of the impact at the end of the year. Early indications remain positive for the category and Britvic, with the shift from full sugar to low or no sugar products accelerating.
- Ireland revenue increased 11.3% (+6.6% ex-SDIL), against both a strong comparative period last year and disruption from the carbon dioxide shortage. Our stills portfolio, including Ballygowan water, benefited from the exceptionally warm weather in the period.
- France revenue declined 15.0%, reflecting both a very strong comparative last year and exceptionally poor weather in June this year. In the 4 weeks to 24 June, the adverse weather drove a total soft drinks market volume decline of over 14% and a syrups market volume decline of nearly 23%.
- Brazil revenue increased 10.2%, against a soft comparative last year.
- International revenue increased 8.7% in the quarter. In the USA, Fruit Shoot continued to make progress with increased distribution and additional listings secured.
For further information please contact:
|Steve Nightingale||Director of Investor Relations||+44 (0) 7808 09 7784|
|Victoria McKenzie-Gould||Director of Corporate Relations||+44 (0) 7885 82 8342|
|Stephanie Macduff-Duncan (Senior Corporate Communications Manager)||Senior Corporate Communications Manager||+44 (0) 7808 09 7680|
|Stephen Malthouse||Headland||+44 (0) 203 805 4844|
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 16 April to 8 July 2018. Britvic France, Britvic Brazil and Counterpoint cover the period from 1 April to 30 June 2018. Please note that Britvic Ireland’s volume and ARP exclude the sale of third-party factored brands through Counterpoint.
GB take-home market data referred to in this announcement is supplied by Nielsen and runs to 7 July 2018. ROI take home market data referred to is supplied by Nielsen and runs to 17 June 2018. French market data is supplied by IRI and runs to 24 June 2018.
NEXT SCHEDULED ANNOUNCEMENT
Britvic will release its preliminary results on 29 November 2018.
NOTES TO EDITORS
BRITVIC REVENUE, VOLUME AND AVERAGE REALISED PRICE (ARP)
rate % on last
rate % on last
|Organic (ex-Bela Ischia) *||366.9||1,087.1||3.4%||3.0%||-0.6%||1.5%|
|Average Realised Price (“ARP”) PPL|
|Organic (ex-Bela Ischia) *||63.9p||59.4p||8.5%||2.9%||4.2%||1.4%|
|Volume – m litres|
|Organic (ex-Bela Ischia) *||556.6||1,768.6||-4.7%||-0.4%||-4.7%||-0.4%|
*Organic is calculated by excluding the results for Bela Ischia from the YTD numbers for the period to 2 March 2018, which is the anniversary date of the acquisition.
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