Trading Statement

RNS Number : 7558B

Britvic plc

24 February 2011

 



Britvic plc  - Trading Statement

Thursday, 24^th February 2011

In accordance with the Company's Interim Management Statement of 27^th January 2011, trading in the second quarter has been strong across each of our operating territories, with the GB & Ireland price-negotiation programmes successfully concluded. Britvic commenced the price negotiations with the aim of protecting cash margins in response to our then-current expectations that GB & Ireland's 2011 input-cost inflation would be 5-6%.

Though the Irish soft drinks market remains challenging, the GB and French markets continue to demonstrate resilience, illustrated by GB take-home market volumes up by 2.9% year-on-year in the four weeks to 22^nd January. This was a period and channel where Britvic captured both volume and value share.

However, the pace of input-cost inflation in recent weeks has been unprecedented, leading us to revise the full-year GB & Ireland input-cost inflation guidance to 9-11%. In particular, we have been adversely impacted by sharp recent increases in the price of PET, steel and sugar. The forecast of particularly challenging input-cost inflation pressure for Britvic France, given its product mix, remains unchanged.

                                                 
The escalation in input costs comes after the completion of this year's price-negotiation process, meaning that we do not expect to be able to recover or mitigate in full the additional input-cost increases we now expect this year. The input-cost inflation will impact the outcome for both the first half and full year, and means we do not now expect any operating-profit margin improvement in 2011, excluding the impact of France. Despite these headwinds, Britvic fully expects this year's operating profit performance to be materially ahead of the 53-week result reported for financial year 2010.

Paul Moody, Chief Executive, commented:

"Since our last update to the market we have witnessed a rapid and unprecedented uplift in the cost of key raw materials. This has been driven by a shortage of supply to the market, where, for example, we have seen prices for PET, derived from oil, surge by around 20% in the last month alone. We do, however, remain confident about the medium to long-term outlook for the business, and we look forward to providing more details on the latter at the annual investor seminar on 23^rd March 2011."

There will be two conference calls today, each with an opportunity for investors and analysts to hear from and pose questions to Paul Moody (Chief Executive) and John Gibney (Group Finance Director). The first call will begin at 9.30am, with a further call commencing at 2.30pm (9.30am Eastern Standard Time).

UK Access Number	[phone]
UK Toll Free	0800 368 1950
US Access Number	[phone]
US Toll Free	[phone]
Participant PIN Code	143013#

A recording of the calls will be available for seven days.

UK Toll Access Number	[phone]
UK Toll Free Number	0800 368 1890
US Toll Free Number	[phone]
Conference Reference	376366# (9.30am call)
Conference Reference	376370# (2.30pm call)

For further information please contact:

Investors:
John Gibney/ Craig Marks/ Steve Nightingale	[phone]
Media:
Marisa Fitch	[phone]
Tom Buchanan/Nick Cosgrove (Brunswick)	[phone]

Britvic's next key date will be the 23^rd March 2011 Investor Seminar in London. Attendance will be by invitation.

Notes

Britvic's Operations

Britvic is one of the leading branded soft drinks businesses in Europe. Britvic is the largest supplier of branded still soft drinks in Great Britain ("GB"), and the number two supplier of branded carbonated soft drinks in GB. The Company leverages its leading brand portfolio including Robinsons, Tango, Drench, J₂O and Fruit Shoot as well as PepsiCo brands such as Pepsi and 7UP which Britvic produces and sells in GB and Ireland under exclusive PepsiCo agreements.

Britvic is an industry leader in the island of Ireland with brands such as MiWadi and Ballygowan, and in France with brands such as Teisseire and Fruité. Britvic is growing its reach into other territories through export, licensing and franchising. Britvic's management team has successfully developed the business through a clear strategy of organic growth and international expansion based on creating and building scale brands. Britvic is listed on the London Stock Exchange under the code BVIC. Its market capitalisation as at 18^th February 2011 was £1.0bn.

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.

Market Data

GB Take-home market data referred to in this announcement is supplied by Nielsen and runs to 22^nd January 2011.

Other

Britvic plc is also referred in this statement as 'Britvic' and 'the Company'.

 

END

 

 

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