52-week Trading Update

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 (€)	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 (€)	(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	[phone]
Media:
Tom Buchanan/Giles Croot (Brunswick)	[phone]
Emma Peacock	[phone]

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. 

UK Access Number	[phone]
UK Toll Free	0800 376 4751
Pin Number	476038#

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

UK Toll Access Number	[phone]
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.

 

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