Britvic - Adapting to the new normal
As expected, the COVID-19 pandemic caused significant declines in out-of-home consumption, which were partly offset by gains in at-home consumption and market share. Full year revenue declined 6.8% on a constant currency basis, while adjusted EBIT was down 21.9% at constant currency, and adjusted EPS was down 27.8%. A full year dividend of 21.6p was confirmed, following the decision in H1 to prudently suspend the dividend. Management focused on cash and cost efficiency to mitigate the impact of the pandemic as much as possible. During the period, the company extended its carbonates relationship with Pepsi to 2040. The outlook is understandably cautious, given the uncertainty in terms of further restrictions in Britvic’s main markets. Nevertheless, management has carefully planned its approach, and the agility demonstrated so far should continue to help Britvic navigate the uncertain environment.Britvic operates in the soft drinks manufacturing and distribution industry. Co. manufactures, markets and sells a range of brands in Great Britain (GB), France, Ireland and Brazil. In addition, Co. is the sole bottler for PepsiCo in GB and Ireland, enabling it to sell their range of soft drinks alongside its owned-brands. Co.'s brand categories include: kids, which includes the Fruit Shoot Hydro, Fruit Shoot Hydro Sparkling, and My5 brands; adult, which includes the Purdey's, J2O Spritz, and J2O brands; and family, which includes the Club Orange and MiWadi brands. Co. also has a portfolio of carbonates and still brands including the brands that it bottles and markets on behalf of PepsiCo.
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