Recessionary conditions may have meant a weak soft drinks market more generally - overall, for example, UK take-home soft drink market volumes slipped by 0.9 per cent in the period - but Britvic has been bucking that trend. Indeed, the maker of such brands as Robinsons, 7Up and Tango grew its UK still drink volumes by 3.6 per cent and its UK carbonates volumes by 7.9 per cent.
And, while the UK remains the group's main market, generating 78 per of total revenues, Britvic's international operations are also delivering a growing contribution. Buoyed by a robust performance in Holland and the Nordic countries, that division grew revenues 18.5 per cent in the period. Although Ireland remains a trouble spot - against the backdrop of especially grim local economic conditions, Britvic's volumes in Ireland slipped by a hefty 10.7 per cent and cash profits dropped 17 per cent to £12.2m. Still, the Irish business is being streamlined and, at the group level, Britivc cut £2m of costs in the period, with a further £2m of savings anticipated in 2010. That helped group operating margin rise by 110 basis point to 12.4 per cent.
UBS expects cash profits of £129m for 2010 (£110m in 2009), and adjusted EPS of 35.45p (29.23p in 2009).
More analysis of company results
BRITVIC (BVIC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 383p | MARKET VALUE: | £830m | |
| TOUCH: | 382-383p | 12-MONTH HIGH: | 401p | LOW: 202p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 18 | |
| NET ASSET VALUE: | * | NET DEBT: | £411m | |
| Year to 27 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 698 | 64.2 | 20.2 | nil |
| 2006 | 678 | 36.5 | 11.2 | 10.0 |
| 2007 | 716 | 55.6 | 19.7 | 11.0 |
| 2008 | 927 | 51.8 | 14.9 | 12.6 |
| 2009 | 979 | 66.2 | 21.8 | 15.0 |
| % change | +6 | +28 | +46 | +19 |
Ex-div: 2 Dec Payment: 12 Feb *Negative equity shareholders' funds | ||||
