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Summary
- Britvic PLC had shown a revenue decline of 6.3% year-on-year to £617.1 million, while the adjusted EBIT plunged by 15.4% during H1 FY21 against H1 FY20.
- The Company will pay an interim dividend of 6.50 pence per share on 07 July 2021.
- The net debt stood at £587.3 million as of 31 March 2021.
Britvic PLC (LON:BVIC) is the consumer Company listed on the London stock exchange. BVIC’s shares have generated a return of around 34.82% in the last 12 months. BVIC is listed on the FTSE 250 index.
On 22 July 2021, BVIC will release the Q3 FY21 trading statement.
Company Overview
Britvic PLC is an FTSE 250 listed United Kingdom-based manufacturer of soft drinks. Moreover, BVIC is strongly present in Britain, Ireland, Brazil, and France. The Company has an enriched portfolio of brands, including Ballygowan, Teisseire, Tango, J2O, Robinsons, Fruité, Maguary, and many more. Furthermore, BVIC has an exclusive agreement with PepsiCo and sell its various soft drinks brands. It exports the products to more than 50 countries.
(Source: Company presentation)
H1 FY21 Financial Highlights (for six months ended 31 March 2021 as of 18 May 2021)
Decline in the Top-Line business- BVIC had witnessed a reduction of around 6.3% in the underlying revenue on a constant currency basis, while the underlying adjusted EBIT had shown a decline of 15.4%. Moreover, the trading restrictions during the nationwide lockdown had caused a significant reduction in both top-line and bottom-line business during H1 FY21.
Resumption of interim dividend – With disciplined cash management, the Company was able to lower its net debt by £94.3 million to £587.3 million (as on 31 March 2021), and thus, reinstated its interim dividend per share of 6.5 pence. BVIC will pay the interim dividend on 07 July 2021, while the ex-dividend date will be 27 May 2021. The Company had not paid any interim dividend in the prior year.
Robust operational performance – Operationally, there was a robust growth in At-Home channels, supporting market share gains in Brazil and Great Britain. Meanwhile, there was a fourth consecutive year of revenue growth in Brazil. Contrarily, on-the-go consumption and the hospitality sector were materially impacted by the pandemic induced restrictions. However, significant progress was made against strategic priorities (including the acquisition of Plenish, simplification of Ireland business, and planned relaunch of Rockstar in H2 FY21 in the energy category).
One Year share price performance of Britvic PLC
(Source: EODHD/Others, Thomson Reuters)
BVIC shares were trading at GBX 953.50 and were up by close to 3.75% as of 18 May 2021 at 02:14 PM GMT. The 14-day RSI stood at ~76.46, while the 20-day simple moving average was around GBX 894.50. BVIC’s 52-week Low and High were GBX 669.00 and GBX 976.00, respectively. Britvic PLC had a market capitalization of around £2.45 billion.
Business Outlook
BVIC demonstrated business resilience and agility during H1 FY21 despite challenging conditions and gained share in its key markets. As a result, it entered H2 FY21 with confidence and optimism as long-term prospects remained strong. With lockdown easing in the UK, there was an encouraging trend in the first weeks of H2 FY21. Therefore, BVIC intends to ramp up investment to capitalize on market opportunities. Furthermore, on-the-go consumption is expected to regain momentum with socializing increases.
