Drinks company Britvic has reported a strong first half of the year on increased revenue and strong demand for its products in the six months to 31 March, it was reported today.
The company, whose brands include Ballygowan and Lipton, reported an increase of 11.2% in revenue on a constant-currency basis, to £880.3 million.
Adjusted earnings before interest and tax (EBIT) increased by 17.7%, to £100.4 million.
The EBIT margin also increased by 60 basis points, to 11.4%.
Volumes And Regions
The company’s profit after tax increased by 10.1%, to £59.9 million, with adjusted earnings per share going up by 18.5%.
Britvic also announced its third share buy-back programme, of up to £75 million, over the next 12 months.
Its brands Ballygowan, MiWadi, Pepsi Max and Lipton experienced standout growth in the measured period.
The company experienced strong consumer demand across its offerings, with a 4.4% increase in volumes.
In Brazil, its core portfolio and recently integrated energy acquisition drove revenue to increase by 34.7% therein.
In new growth spaces, revenue for the brand increased by 63.5%, led by an outstanding performance from Plenish health drinks.
‘Positive Outlook’
Speaking about the results, the chief executive of Britvic, Simon Litherland, said, “I am delighted with our excellent first-half performance.
“Revenue growth of 11.2%, underpinned by volume growth of 4.4%, has translated into adjusted EBIT growth of 17.7% and earnings-per-share growth of 18.5%.
“We are also announcing our third share buy-back – of £75 million over the next 12 months – reflecting our strong earnings, free cash flow generation, and positive outlook.
“As expected, our market-leading growth comes from the combination of another strong performance from our […] family favourite brands, coupled with accelerated growth in Brazil and across multiple new growth spaces, such as London Essence, Aqua Libra and Plenish.
“We have increased the investment behind our brands by over 38% in the period.”
Litherland added, “Looking forward, I am confident that we will deliver a strong full-year performance.
“In the medium term, I firmly believe the continued execution of our strategy and growth drivers will allow us to sustainably outperform both the market and our historical top-line growth rate, leaving the company poised to continue our long-standing track record of delivering outstanding returns for our shareholders.”
