Britvic (BVIC) is giving up on France, at least in part. Earlier this month, the drinks manufacturer proposed the sale of three of its bottling facilities in the country to bottler Refresco, along with the associated private-label juice business and the Fruité brand. Management argues this will allow it to focus on brands such as Teisseire and Moulin de Valdonne and its private-label syrups business, but it comes at a cost. Impairing the assets – along with its exit from its Fruit Shoot multipack operations in the US and other items – led to adjustments of £84.6m, sending pre-tax profit down 30.9 per cent. On an adjusted basis, operating profits were up 4.4 per cent to £214m, while margins expanded 40 basis points.
The group’s core British market has seen softer consumer demand, with Nielsen reporting a 1.3 per cent drop in market volume – although this must be viewed in the context of 2018’s exceptionally hot summer. In spite of the weak markets, revenues increased 8.7 per cent for carbonates and 0.4 per cent for stills. Pepsi – which Britvic is licensed to bottle in the UK – and Tango both gained market share in the period. Bloomberg consensus forecasts point adjusted EPS of 61.2p for the year to November 2020, up from 59.8p in the current period.
| BRITVIC (BVIC) | ||||
| ORD PRICE: | 990p | MARKET VALUE: | £ 2.63bn | |
| TOUCH: | 989-990p | 12-MONTH HIGH: | 1,079p | LOW: 783p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 32 | |
| NET ASSET VALUE: | 155p* | NET DEBT: | 154% | |
| Year to 27 Nov | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 1.30 | 138 | 41.8 | 23.0 |
| 2016 | 1.43 | 152 | 43.8 | 24.5 |
| 2017 | 1.43 | 139 | 42.4 | 26.5 |
| 2018 | 1.50 | 146 | 44.4 | 28.2 |
| 2019 | 1.55 | 110 | 30.6 | 30.0 |
| % change | +3 | -24 | -31 | +6 |
| Ex-div: | 05 Dec | |||
| Payment: | 05 Feb | |||
| *Includes intangible assets of £428m, or 161p a share | ||||
