23rd Mar 2020 10:32
(Alliance News) - Britvic PLC on Monday said it expects "material" reduction in its earnings in 2020 due to Covid-19.
The producer of soft drinks said trading in the quarter to the end of this month - its financial second quarter - was broadly in line with expectations, prior to the "recent developments".
However, the recently announced closure of on trade outlets and restrictions in people movement in each of Britvic's markets will "significantly" hurt consumption both in outlet and on the go.
Therefore, Britvic said it anticipates a "material impact" to revenue and earnings in 2020. The Hemel Hempstead-based company said its "best" estimate of the impact is a reduction in earnings before interest, taxes and amortization of between GBP12 million and GBP18 million per calendar month.
These figures include a number of actions Britvic said it is taking to mitigate the profit impact through cost control and reduced discretionary spend across its business.
The company said its interim dividend is due to be proposed at the time of first-half results publication on May 20. However, Britvic said it will consider closer to the time whether it is appropriate to recommend or postpone the interim dividend.
"I have spoken many times about Britvic's resilience in the face of tough external circumstances. Never has that been tested as much as is happening now," said Chief Executive Simon Litherland.
"In the short term our priorities remain the welfare of our people, maintaining the availability of our products to consumers through our diverse customer base, and sound financial management of the business," added Litherland.
FTSE 250-listed Britvic shares were trading 6.8% lower in London on Monday at 594.00 pence each.
By Evelina Grecenko; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Britvic