Britvic increases 2013 interim dividend by 1.9%

DividendMax Ltd.

Britvic increases 2013 interim dividend by 1.9%

Financial Highlights:

Strong profit growth with EBITA of £53.6m up 27.6% on prior year and EBITA margin up 180 basis points

Underlying EBITA up 17.9% when adjusted for one off and phasing items, demonstrating a materially improved financial performance 

Strong margin and pricing growth in every business unit. Group revenue up 0.4%

Significant progress in improving free cash flow conversion, resulting in reduction of group adjusted net debt by £30.7m

Adjusted earnings per share up 47.6% to 12.4p and dividend increase of 1.9% to 5.4p

Strategic Highlights:

Announcement of a new strategy which will accelerate growth of the core and international business

Major initiatives, underpinning the strategy, will deliver annual savings of £30m by 2016. These include proposals to close two factories in GB and a warehouse in Northern Ireland as well as the creation of a combined GB and Ireland business unit under a single leadership team

Increase in investment of £10m per annum by 2015 in the International business unit to accelerate the realisation of the increasing growth potential of our brands internationally

Agreement reached with Narang Group for the national sales & distribution of Fruit Shoot in India, commencing mid-2014

Simon Litherland, Chief Executive commented:

"Britvic has delivered strong first-half profit growth, a material improvement in cash flow and a reduction in net debt. This has been achieved by growing our average realised price, a continued focus on cost and the substantial progress we have made in improving the underlying strength of our business. 

Today we have announced a new strategy which will lead to a step change in performance and improved returns for shareholders. We intend to change our operating model to generate stronger performance in our core markets and accelerate the increasingly attractive international opportunities, underpinned by a reduction in the cost base of £30m per annum by 2016. 

Based on our strong interim results and the exciting marketing activity we will be executing in the second half of the year, we are confident that we will deliver full year EBIT towards the upper end of our previously communicated range of £125m - £131m."

Gerald Corbett, Chairman commented:

"The proposed merger with A.G. Barr lapsed on 13 February when the transaction was referred by the Office of Fair Trading to the Competition Commission. 

The Competition Commission is expected to announce its final decision by the end of July. The board will then decide, in light of the Competition Commission's decision, whether a transaction on the right terms with appropriate management and governance arrangements, can be consummated in the interests of shareholders.

In the meantime, as we approach our busiest time of year, the management team, under our new Chief Executive, is totally focused on executing its new strategy, continuing the momentum established in the first half and delivering on the vision of a growing, international and increasingly profitable Britvic."

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