Released: 15/10/2009
com:20091015:RnsO7989A
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RNS Number : 7989A
Britvic plc
15 October 2009
Britvic plc ("Britvic") 52-week Trading Update
15th October 2009
Britvic today reports full-year trading results for 2009, with strong top-line
growth continuing into the fourth quarter ("the quarter"). For the full 52-week
period, total revenue increased by 5.6% to £978.8m, driven by both volume and
average realised price ("ARP") growth. The full-year GB and International
revenue growth of 8.7% reflects GB carbonates growth of 11.0%, GB stills growth
of 5.7% and International growth of 18.5%.
Total revenues of £246.5m for the 12 weeks to 27th September 2009 represent an
increase of 4.2% on the prior year, resulting again from both volume and ARP
growth. Against a particularly strong comparative quarter last year, GB and
International revenues grew by 8.1% to £197.8m, reflecting GB carbonates growth
of 9.1%, GB stills growth of 5.6% and International growth of 28.8%.
Britvic Ireland volumes for the quarter to 30th September 2009 were down 13.9%
with euro revenues down 16.3%. Sterling-based Irish revenues were down by 9.0%
in the same period, with a full-year sterling-based revenue decline of 5.6%.
% change on last year
Q4 Full Year
Volume
GB Carbs 6.3 7.9
GB Stills (0.6) 3.6
International 29.4 10.3
Ireland (13.9) (10.7)
GROUP 1.6 3.9
ARP
GB Carbs 2.4 2.7
GB Stills 6.3 2.0
International (0.5) 7.5
Ireland (E) 3.1 (3.6)
GROUP (£) 4.2 2.9
Revenue
GB Carbs 9.1 11.0
GB Stills 5.6 5.7
International 28.8 18.5
Ireland (E) (16.3) (16.9)
GROUP (£) 4.2 5.6
GB Carbonates
In the fourth quarter, Britvic continued to outperform the GB take-home
carbonates market, with volume growth of 6.3% against a market up by 0.9%.
Effective through-the-line execution and strong brand equity programmes have led
to double-digit revenue growth for each of the Pepsi, 7Up and Tango brands this
year. A GB carbonates ARP increase of 2.4% was a result of our continued focus
on efficient promotions and a strengthened product and pack mix.
GB Stills
GB Stills volumes in the quarter were down 0.6% against a market up 2.5%, the
latter reflecting a marked improvement in the water category where our Drench
brand is lapping its strong launch performance last year. Our focus on stills
ARP growth has continued, resulting in revenue increasing by 5.6% in the
quarter. The comprehensive nature of our stills brand portfolio has contributed
to our market leading performance, and we have seen strong results from brands
such as Robinsons squash, Fruit Shoot H2O and Gatorade, as well as innovation
launches such as Juicy Drench.
Britvic International
Our International division delivered another strong performance of 28.8% revenue
growth in the quarter. This performance was mainly a result of very effective
in-market activity in the Netherlands, where Britvic delivered its highest ever
market shares during the summer, strong Robinsons squash activity in the
Nordics, and the launch of Fruit Shoot in Sweden in August.
Ireland
In the extremely challenging macro-economic environment, the soft drinks market
shows no indication of a return to growth in the short term. In the 12 weeks to
the end of August, ROI grocery soft drinks market volumes are down 0.5%.
Continuing weakness in the Convenience & Impulse and Licensed On-Premise
markets, with volumes down by 1.7% and 20.5% in the 12 weeks respectively, has
adversely impacted our business. The ongoing adverse performance of these
channels has contributed to Britvic Ireland's expected volume decline of 13.9%
in the quarter to the end of September, and a euro-revenue decline of 16.3%.
GB Soft Drinks Market
In the 12 weeks to 26th September 2009 the modest improvements seen in the GB
take-home soft drinks market have continued. Volume in the market increased by
1.7% in the final 12 weeks to finish 0.9% down in the full year.
The Licensed On-Premise soft drinks market experienced a volume decline of 1.6%
for the three months to the end of July 2009, although the month of July showed
an encouraging increase of 0.4% by volume. In the full year to July, soft drink
market volumes fell 2.5%.
Input Costs
Despite adverse foreign exchange rate movements, the more favourable current
commodity price environment now means that Britvic expects only flat-to-marginal
input cost increases in the 2010 financial year.
Paul Moody, Chief Executive commented:
"Strong revenue growth achieved by selling more branded soft drinks at higher
prices characterises our performance in the latest quarter and the full year.
Compelling brand-equity programmes and strong innovation, supported by excellent
execution at the point of sale, have been instrumental in our success. A
re-engineered business in Ireland is, we believe, well placed to exploit market
growth as it returns.
The combination of top-line growth and close management of costs mean that we
will meet our recently-increased expectations for 2009. Additionally, despite
the poor visibility of future market performance, we remain fully confident at
this early stage that we have the momentum, brands and in-market execution to
deliver another strong set of results for the year ahead."
For further information please contact:
Investors:
Craig Marks/Steve Nightingale +44 (0)1245 504 330
Media:
Tom Buchanan/Giles Croot (Brunswick) +44 (0)207404 5959
Emma Peacock +44 (0)1245 261 871
There will be a conference call today at 9.30am for investors and analysts with
Paul Moody (Chief Executive) and John Gibney (Group Finance Director) and a
further conference call at 3.00pm (10.00am Eastern Standard Time) today
primarily for US investors, noteholders and analysts. There will be an
opportunity on both calls to ask questions.
UKAccess Number +44 (0)20 7075 6551
UKToll Free 0800 376 4751
Pin Number 476038#
A recording of both calls will be available for seven days.
UK Toll Access Number +44 (0)20 7075 6589
UK Toll Free Access Number 0800 376 5689
US Toll Free Access Number 1 866 286 6997
Conference References 249456# (9.30am call)
249454# (3.00pm call)
Notes to editors
Britvic is one of the two leading branded soft drinks businesses in the UK and
the Republic of Ireland. The Company is the largest supplier of branded still
soft drinks in Great Britain, and the number two supplier of branded
carbonates.
Britvic's broad portfolio of leading brands includes established names with high
brand recognition such as Robinsons, Tango, J2O and Fruit Shoot. Included within
the portfolio are the PepsiCo brands which Britvic produces, markets, sells and
distributes under its exclusive appointments from PepsiCo. This brand and
product portfolio enables Britvic to target and satisfy a wide range of consumer
demands in all major soft drinks categories, via all available routes to market.
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 Company 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.
Reporting Periods
Britvic Ireland reports on a monthly basis in comparison to the rest of the
Britvic group of companies which report on thirteen 4-week periods. There are no
immediate plans to change this reporting structure.
Market Data
Take-home market data referred to in this announcement is supplied by AC Nielsen
and runs to 26th September 2009.
Britvic Ireland
Please note: Irish volumes and ARP shown refer only to owned brands. Revenue
also includes that derived from the sale of third-party brands within the
wholesaling division.
This information is provided by RNS
The company news service from the London Stock Exchange
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