4th Apr 2006 07:02
Britvic plc04 April 2006 4 April 2006 Britvic plc ("Britvic") pre-half year close period Trading Update As part of the Company's ongoing reporting calendar, Britvic today releases itspre-half year close period Trading Update for the twenty four weeks to 19 March2006. This announcement includes H1 2005 IFRS pro-forma adjusted numbers. In line with our statement on March 2, our guidance remains that if, as weanticipate, the soft drinks market shows recovery over the balance of the yearwhen the majority of our sales are made, we continue to be confident ofdelivering earnings within the range of current market expectations. The consumer trend towards "better for you" that was evident in our performancein the 8 weeks of trading post Christmas has continued into March. As aconsequence we have yet to see a recovery in the total carbonates market butthere are signs that the rate of decline in sales of full sugar carbonates, themost affected category, is stabilising. The overall stills market continues toshow growth. In the twenty four weeks to 19 March 2006, a quieter time of the year fortrading, branded revenue was down by 3.4% compared with the same period lastyear, with stills up 1.3% and carbonates down 7.3%. This performance is in partexplained by trading in the last four weeks which has been heavily influenced bythe timing of the important Easter period, falling three weeks later this yearthan last, the unseasonably cold weather and recent structural changes in thecustomer base. Against a marginally negative pricing backdrop and lower volumes, first half netmargins have been further affected by the previously highlighted increases ininput and energy costs. While overhead savings initiatives have helped to offsetsome of this impact, we still expect first half EBIT margins to be down byaround one percentage point on last year. Paul Moody, CEO of Britvic plc commented: "We continue to focus on driving revenue through core brand activity, successfulnew product launches and increasing our average realised price. Alongside thiswe are concentrating on reducing costs, with a full year target of at least£10m, improving our cash position and reducing working capital. We continue tomaintain a strong market share performance in many of our key categories andlook forward to a stronger second half." The Company's next update to the market will be with its Interim Results for thetwenty eight weeks to 16 April 2006 on 25 May 2006. Britvic will be hosting an investor day tomorrow focused on the Soft DrinksCategory Report, and the Business Transformation and Product Value Optimisationprogrammes. No new trading information will be disclosed and the presentationused at the event will be posted on our website. For further information please contact: Investors:John Gibney/ Jo Guano 01245 504 330 Media:Conor McClafferty/ Jonathan Glass (Brunswick) 0207 404 5959 There will be a conference call today at 8.00am for investors and analysts withPaul Moody (Chief Executive) and John Gibney (Finance Director) and a furtherconference call at 2.30pm (9.30am Eastern Standard Time) today primarily for USinvestors and analysts. There will be an opportunity on both calls to askquestions. A recording of both calls will be available for seven days. To accessthese calls please dial the relevant number below and use the access number. 8.00am call Access Number: +44 (0)20 8609 0205 Pin Number: 995324# 2.30pm call Access Number: +44 (0)20 8609 0205 Pin Number: 217348# Redial Number: +44 (0)20 8609 0289 Conference Reference: 141347 (8.00am call) 141350 (2.30pm call) Notes to editors Britvic is one of the two leading soft drinks businesses in Great Britain. TheCompany is the largest supplier of still soft drinks, the faster growingcategory in the soft drinks market, and the number two supplier of carbonates. Britvic plc's broad portfolio of leading brands includes established names withhigh brand recognition such as Robinsons and Tango and highly successfulinnovations such as J20 and Fruit Shoot. Included within the portfolio are thePepsi and 7UP brands, which Britvic produces, markets, sells and distributesunder its exclusive appointment from PepsiCo which runs until December 2023.This brand and product portfolio enables Britvic to target and satisfy a widerange of consumer demands in all major soft drinks categories, via all availableroutes to market. Cautionary note regarding forward-looking statements This announcement includes statements that are forward-looking in nature.Forward-looking statements involve known and unknown risks, uncertainties andother factors which may cause the actual results, performance or achievements ofthe Company to be materially different from any future results, performance orachievements expressed or implied by such forward-looking statements. Appendix 1 -2005 H1 unaudited proforma accounts 28 weeks ended 17 April 2005 Proforma £ millions Revenue 343.1Cost of Sales -130.0 ---------Gross Profit 213.0Selling and distribution costs -121.2Administration Expenses -69.6 ---------Profit from continuing operations before tax and financecosts/income 22.2 --------- Profit from continuing operations before exceptionalitems, 23.1Tax and finance costs/incomeExceptional operating items -0.9 ---------Profit from continuing operations before tax and financecosts/income 22.2Finance costs -9.0Finance income 0.2 ---------Profit before tax 13.4Taxation: UK -4.3 ---------Profit for the year 9.1 --------- Appendix 2 - Supplementary information re H1 2005 IFRS proforma adjusted numbers H1 05 Reported Private Water H1 05 Adjusted Label Adjustments(£m unlessotherwise stated)---------------- --------- --------- --------- ---------Volume(millionlitres) Stills 234.0 (20.8) 213.1 Carbonates 448.0 448.0 International 17.3 17.3 --------- --------- Total 699.2 (20.8) 678.4 Turnover Stills 156.8 (1.6) 155.2 Carbonates 175.6 175.6 International 10.7 10.7 --------- --------- Total 343.1 (1.6) 341.5 BrandContribution Stills 75.2 (0.4) 74.8 Carbonates 71.8 71.0 International 3.2 4.0 --------- --------- Total 150.2 (0.4) 149.8 Non brand A&P -5.0 -5.0Fixed SupplyChain -36.3 -36.3Selling Costs -48.8 -48.8Overhead andother costs -37.0 -37.0 EBIT 23.1 (0.4) 22.7Interest -8.8 -8.8 Profit beforeexceptionals 14.3 (0.4) 13.9Exceptionals -0.9 -0.9 Profit BeforeTax 13.4 (0.4) 13.0Tax -4.3 -4.3 Profit AfterTax 9.1 (0.4) 8.7 Profit aftertax preexceptional 10.0 (0.4) 9.6 NB. Private Label Water Adjustment removes the impact of the own label waterbusiness with grocery retailers acquired following the acquisition of Ben Shaw'swater business. This business has subsequently been discontinued This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Britvic