Soft drink maker Britvic has posted a 1.4% increase in reported revenue in the year to 29 September, however profit after tax dropped 30.9% in the period.
"I am confident that Britvic is well placed to capitalise on the future growth opportunities in the years ahead," commented Simon Litherland, Britvic's chief executive. "While we anticipate conditions to remain challenging, we fully expect that we will make further progress in 2020.”
Here's how leading industry analysts viewed its performance:
Nico von Stackelberg, Liberum
"Britvic's FY19 revenue was 80bps behind consensus estimates. Adjusted EBIT was in line while adjusted EPS beat by 2.7% and dividend per share exceeded estimates by 1.7%. The adjusted EPS beat was helped by a lower adjusted tax rate and lower interest charge.
"On a reported basis, profit after tax declined 30.9% due to £33m of charges related to BCP, which will roll off in 2020, as well as £31m of asset write-down in France.
"The guidance statement is light on the detail but we suspect consensus FY2020 to come down a few percentage points. We are excited for Britvic's free cash flow story to improve but believe it is priced into the shares."
Steve Miley, www.asktraders.com
"Earnings before interest and taxes fell to £130 million for the year ending 30th September from £166 million a year earlier. The decline in profits came as Britvic struggled with new laws over suppliers pay in France which forced prices higher and as it wrote down some assets in the country.
"Sales of Britvic’s low sugar and fruit-based beverages are a bright spot in the report. This is an area we expect to see expand going forward given the current low sugar push in the UK and some European countries. Investors were disappointed with the slump in profits with the share price dropping over 2% in early trade."
Chris Daly, Chartered Institute of Marketing
“UK Revenue is up for Britvic, but the business is not about to rest on its laurels. The FTSE 250 company has a refreshed strategy focusing on key categories for growth including the launch of new products in the adult soft drink market. Another major move is the Christmas campaign for Pepsi Max which urges shoppers to ‘try a new tradition’.
"Britvic will be hoping to emulate the success of 'Robinsons Revitalise', which won industry awards this year for updating perceptions of the brand and driving shoppers back to an old favourite.
"Although Coca-Cola has long been synonymous with the festive period, retailers may yet be persuaded to give Britvic’s cola brand a larger share of shelf space.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
