Britvic plc (“Britvic”) Q1 Interim Management Statement to 22 December 2013
Britvic today reports its Q1 trading performance for the 12 weeks to 22 December 2013 and remains on track to deliver full year EBIT in line with previous guidance of £148m to £156m. Despite a continued challenging consumer environment in all of our markets revenue increased by 2.8% (Actual Exchange Rate) and 1.3% (Constant Exchange Rate) to £311.8m. The move of the Ireland Business Unit to weekly reporting in FY14 has shortened its Q1 reporting period compared to last year. Comparable revenue for the group, on a constant exchange rate basis, increased by 2.3%.
· Positive price/mix led to an Average Realised Price (ARP) improvement of 2.7%
· GB revenue growth of 1.5%, driven by robust ARP growth of 3.0%
· Ireland revenue growth of 2.1%* on a comparable basis, reported revenue declined 5.8%, due to 8 fewer trading days
· France revenue growth of 4.7%**, underpinned by ARP growth of 4.5%
· International revenue growth of 5.6%, driven by both price and volume growth
· Delivery of strategic initiatives remains on track with good progress in the quarter
GB revenue grew by 1.5%. GB carbonates grew revenue by 2.5%, building on strong growth in Q1 of the previous year of 9.2%. Volume was down marginally whilst ARP grew by 3.6%. Pepsi continued to outperform the cola category, growing take-home market value share.
GB stills revenue declined 0.3% with a volume decline of 3.4% being largely offset by a positive price/mix which helped ARP grow by 3.2%. Fruit Shoot continued to grow in the quarter whilst Robinsons and J20 volumes declined due to a combination of competitor price activity and our ongoing focus on driving improved returns as we continue to implement the commercial change programme.
In a competitive market we continued to grow total GB take-home market value share.
Ireland Q1 comparable revenue grew by 2.1%*. The underlying performance has continued to improve, with both revenue* and take-home market share in growth, despite trading conditions remaining difficult. In the quarter we successfully launched “Counterpoint”, our licensed wholesale business which supplies the pub and club channel.
France Q1 revenue grew by 4.7%**. Volume was broadly flat whilst positive price/mix grew ARP by 4.5%, building on the Q1 growth that we have seen in the last 2 years. Across the portfolio, we continued to grow our branded market share, with Teisseire Fruit Shoot, in particular, performing strongly.
International Q1 revenue grew by 5.6%. With both volume and ARP growth, the International business unit continued to grow revenue. In line with our expectations, revenue growth was slower than in previous quarters due to the phasing of concentrate shipments to the USA. Fruit Shoot continued to grow its market presence in the USA, whilst in India we remain on-track to launch Fruit Shoot in mid-2014.
Simon Litherland, Chief Executive, commented:
“We delivered a robust Q1 performance in each of our core markets despite a challenging consumer environment. We continued to make good progress implementing our new strategy and remain on-track to deliver our cost reduction initiatives as planned this year. Trading in the first few weeks of Q2 is ahead of last year, and we remain confident that EBIT this year will be within the range of £148m to £156m, which we communicated at our preliminary results in November.”
* As disclosed at the year-end the Irish business unit has now changed its accounting periods as part of the integration with the GB division. The business has moved from a monthly to a 4 weekly accounting cycle and as a consequence, reported eight days less trading compared to last year.
** France export volume and revenue is now managed and accounted for in the International business unit. Prior year in both the France and International business units has been restated to reflect this.