REG-Britvic plc Q3 2023 Trading Statement

BritvicAnnouncement

27/07/2023 07:15

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   Britvic plc (BVIC )
   Q3 2023 Trading Statement

   27-Jul-2023 / 07:00 GMT/BST

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   Britvic plc

   LEI: 635400L3NVMYD4BVCI53

   27 July 2023

    

                            Britvic plc (“Britvic”)

                                        

   Strong Q3 trading and progress against our strategic priorities with
   bolt-on acquisitions in Great Britain and Brazil

    

   Simon Litherland, Chief Executive Officer commented:

   “Trading in the quarter has been strong, with revenue increasing 9.9%,
   driven by positive price/mix and volume growth. Consumer demand for our
   portfolio of leading family favourite brands remains buoyant ahead of the
   key summer trading period, as we continue to offer consumers great quality
   and value at affordable prices. We expect to deliver full year revenue and
   profit within the range of current market expectations.

   We are also announcing two targeted acquisitions today. In Great Britain,
   we will expand our portfolio through the addition of Jimmy’s Iced Coffee,
   another highly appealing consumer brand in a strongly growing market
   segment. In Brazil, we are extending both our brand portfolio and our
   regional footprint in the Centre-West though the acquisition of the energy
   brand Extra Power. These transactions are aligned to our strategic
   priorities and provide further opportunities to accelerate our strong
   growth trajectory.”

    

   Q3 Trading

                                        

   To 30 June 2023    YOY Growth (at constant currency)
         Revenue   Group   GB   Brazil Other International
    Q3   £476.7m   +9.9% +10.1% (1.9)%       +13.3%
   YTD  £1,270.8m  +8.6% +10.3% (1.6)%        +8.1%

    

   Q3 performance highlights

    

     • Robust Q3 performance, with volume growth and positive price/mix,
       resulted in revenue growth of +9.9% vs the prior year.
     • In Great Britain, revenue grew 10.1% vs the prior year, with volume
       growth in both retail and hospitality channels, as well as the impact
       of revenue growth management actions in response to inflationary
       pressures.
     • In Brazil, revenue declined 1.9% vs the prior year. In the core soft
       drinks business, positive price/mix continued to drive margin
       improvement though had a small impact on volumes, and there was a
       continued reduction in exports from the Be Ingredient fruit processing
       business.
     • Other International revenue increased 13.3%. Ireland revenue benefited
       from positive price/mix and volume growth, while in France, strong
       price/mix more than offset soft volumes.
     • Full year revenue and EBIT are anticipated to be within the range of
       current market expectations.

    

   Acquisition in Great Britain

    

   The UK ready-to-drink iced coffee category is both large and fast-growing,
   with a retail sales value (RSV) of £280m1 last year, an annual increase of
   15.3%. Founded in 2010, Jimmy’s Iced Coffee is the fastest growing brand
   in the segment1, thanks to its uplifting brand personality, refreshing
   range of products, differentiated packaging and multi-channel presence. In
   the year to June 2023, Jimmy’s Iced Coffee generated a retail sales value
   of £17m1, +43% on the previous year.

    

   We intend  to  further  accelerate  the  growth  of  Jimmy’s  through  the
   utilisation of Britvic’s  market-leading customer  relationships to  drive
   new listings and increase  distribution, while increasing cost  efficiency
   through Britvic’s  supply  chain  expertise  and  procurement  capability.
   Jimmy’s is well aligned to our Healthier People, Healthier Planet  pillar,
   with lower calories per serve than the category average, fully  recyclable
   packaging and compliance with HFSS legislation.

    

    1. IRI category data. Total market (inc. discounters); 52 weeks to
       22.04.23.

    

   Acquisition in Brazil

    

   The acquisition of the Extra Power energy brand marks an important
   extension of Britvic’s Brazilian operations, consistent with our strategy
   to accelerate and expand our presence across Brazil. With 42% market share
   in its core regions near Brasilia, Extra Power enables access to the
   fast-growing, high-margin energy category. The transaction also includes a
   modern, efficient warehouse in Brasilia, which will enhance our supply
   chain efficiency across our wider portfolio and route to market into the
   Centre-West region (Distrito Federal & Goias).  In the year to December
   2022, the acquisition generated R$118m of net sales, growing 26% on the
   previous year.

    

   The acquisition is highly synergistic, with both revenue and cost
   synergies identified, and is accretive to all of growth, margin, and
   earnings.

    

   The two acquisitions will be financed from existing facilities, the
   combined value of which will have a nominal impact on our debt leverage of
   approximately 0.2x net debt / EBITDA. In Brazil, additional
   performance-related consideration will be due if stretching targets are
   achieved. The acquisition in Brazil will require regulatory clearance but
   is expected to be completed around the start of our next financial year in
   October 2023.

    

   For further information please contact:

   Investors:                                             
   Steve Nightingale (Director of Investor Relations)    +44 (0) 7808 097 784
   Media:                                                 
   Stephanie Macduff-Duncan (Head of Corporate           +44 (0) 7808 097 680
   Communications)
   Stephen Malthouse (Headland)                          +44 (0) 7734 956 201

    

    

   Note to editors

    

   About Britvic

   Britvic is an international soft drinks business rich in history and
   heritage. Founded in England in the 1930s, it has grown into a global
   organisation with 37 much-loved brands sold in over 100 countries. The
   company combines its own leading brand portfolio including Fruit Shoot,
   Robinsons, Tango, J2O, London Essence, Teisseire and MiWadi with PepsiCo
   brands such as Pepsi, 7UP and Lipton Ice Tea, which Britvic produces and
   sells in Great Britain and Ireland under exclusive PepsiCo agreements.

    

   Britvic is the largest supplier of branded still soft drinks in Great
   Britain and the number two supplier of branded carbonated soft drinks in
   Great Britain. Britvic is an industry leader in the island of Ireland with
   brands such as MiWadi and Ballygowan, in France with brands such as
   Teisseire, Pressade and Moulin de Valdonne and in its growth market,
   Brazil, with Maguary, Bela Ischia and Dafruta. Britvic is growing its
   reach into other territories through franchising, export and licensing.

    

   Britvic is a purpose driven organisation with a clear vision and a clear
   set of values. Our purpose, vision and values sit at the heart of our
   company, driving us forward together to create a better tomorrow. We want
   to contribute positively to the people and world around us. This means
   ensuring that our sustainable business practices, which we call Healthier
   People, Healthier Planet, are embedded in every element of our business
   strategy.

    

   Britvic is listed on the London Stock Exchange under the code BVIC and is
   a constituent of the FTSE 250 index. Find out more at  1 Britvic.com

    

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   The issuer is solely responsible for the content of this announcement.

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   ISIN:          GB00B0N8QD54
   Category Code: TST
   TIDM:          BVIC
   LEI Code:      635400L3NVMYD4BVCI53
   Sequence No.:  260425
   EQS News ID:   1689349


    
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