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 GBP476.7m +9.9% +10.1% (1.9)% +13.3%
YTD GBP1,270.8m +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% vsthe prior
year.
-- In Great Britain, revenue grew 10.1% vs the prior year, with
volume growth in both retail and hospitalitychannels, 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/mixcontinued to drive
margin improvement though had a small impact on volumes, and there
was a continued reduction inexports from the Be Ingredient fruit
processing business.
-- Other International revenue increased 13.3%. Ireland revenue
benefited from positive price/mix and volumegrowth, 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 GBP280m1 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
GBP17m1, +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 RUSD118m 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 Communications) +44 (0) 7808 097 680
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
Britvic.com
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Group. 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
End of Announcement EQS News Service
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July 27, 2023 02:00 ET (06:00 GMT)
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