Britvic — H1 2010 Earnings Presentation
31 slides from Britvic's earnings presentation, Jul 14, 2010
Slide 1: 2010 Interim Results
2010 Interim Results BRITVIC A SAND WILD: : SD DEVE BASS phe aa
Slide 2: Gerald Corbett, Chairman
\@ BRITVIC Gerald Corbett Chairman
Slide 3: John Gibney, Group Finance Director
John Gibney Group Finance Director 3
Slide 4: Agenda
Agenda Financial Performance John Gibney Britvic and the Market Review Paul Moody 4
Slide 5: Group Performance in H1
Group Performance in H1 +4.6% +8.8% +150bps +37.7% +14.6% Additional GB/Int’l Group EPS Interim group revenue EBIT continues dividend revenue maintained margin up to grow increase strong growth growth Note: All numbers are pre-exceptionals unless stated otherwise 5
Slide 6: Financial Headlines
Financial Headlines H110 H109 % £’m £’m change Revenue 505.3 483.2 4.6 EBIT 40.7 31.9 27.6 EBIT Margin 8.1% 6.6% 150bps Profit After Tax 20.5 14.8 38.5 Free Cashflow (50.0) (24.6) (103.3) Adjusted Net Debt (442.4) (442.7) 0.1 Basic Earnings Per Share 9.5p 6.9p 37.7 Interim Dividend Per Share 4.7p 4.
Slide 7: GB Stills
GB Stills H110 H109 % Change £’m £’m Volume (m. litres) 254.0 246.0 3.3 ARP per litre (pence) 70.1 68.6 2.2 Revenue 178.0 168.7 x% 5.5 Brand Contribution 77.8 69.8 11.5 Brand Contribution Margin 43.7% 41.4% 230bps OUTPERFORMANCE OF THE 38% of group MARKET brand contribution Note: All numbers are pre
Slide 8: GB Carbonates
GB Carbonates H110 H109 % Change £’m £’m Volume (m. litres) 536.0 495.6 8.2 ARP per litre (pence) 42.3 41.2 2.7 Revenue 226.8 204.4 11.0 Brand Contribution 86.6 73.6 40.7% 17.7 Brand Contribution Margin 38.2% 36.0% 220bps 43% of group OUTPERFORMANCE OF THE brand MARKET contribution Note: All numbers
Slide 9: International
International % H110 H109 £’m £’m Change Volume (m. litres) 14.7 11.4 28.9 ARP per litre (pence) 73.5 78.9 (6.8) Revenue 10.8 9.0 20.0 Brand Contribution 4.1 3.0 36.7 Brand Contribution Margin 38.0% 33.3% 470bps GROWTH IN NORDICS, 2% of group NETHERLANDS AND TRAVEL brand contribution Note: All numbe
Slide 10: Ireland
Ireland H110 H109 % Change £’m £’m 17% of group brand Volume (m. litres) 114.0 123.6 (7.8) contribution 19.0% ARP per litre (pence) 58.3 60.1 (3.0) Revenue 89.7 101.1 (11.3) Brand Contribution 35.5 34.3 3.5 Brand Contribution 39.6% 33.9% 570bps Margin EBITA 2.2 0.9 144.4 EBIT 1.3 0.0 - Note: All num
Slide 11: A&P and Fixed Costs
A&P and Fixed Costs % H110 H109 Change £’m £’m Total A&P spend (29.6) (28.9) (2.4) A&P as a % of revenue 6.1% 6.3% (20)bps Non-brand A&P (4.8) (4.1) (17.1) Fixed Supply Chain (48.9) (49.0) 0.2 Selling Costs (57.1) (54.2) (5.4) Overheads & Other (52.5) (41.5) (26.5) TOTAL FIXED COSTS (163.3) (148.8)
Slide 12: EBIT to Earnings
EBIT to Earnings H110 H109 % £’m £’m change EBIT 40.7 31.9 27.6 Interest (12.9) (11.9) (8.4) Profit before tax 27.8 20.0 39.0 Tax (7.3) (5.2) (40.4) Tax rate 26.3% 26.0% (30)bps Profit after tax 20.5 14.8 38.5 Note: All numbers are pre-exceptionals unless stated otherwise 12
Slide 13: Cashflow
Cashflow H110 H109 % £’m £’m change EBIT 40.7 31.9 27.6 Depreciation & amortisation 21.3 21.6 1.4 EBITDA 62.0 53.5 15.9 Working capital (58.2) (23.9) (143.5) Capital expenditure (24.7) (26.5) 6.8 Pension contributions (11.6) (10.0) (16.0) Other (17.5) (17.7) 1.1 Free cashflow (50.0) (24.6) (103.3) D
Slide 14: Underlying Guidance – 2010
Underlying Guidance – 2010 Revenue Costs Capex • We remain • A&P: ~6% as a • GB £40-£45m cautious on proportion of operating leases consumer revenue £5-6m spending in H2 • Raw material • Ireland €8m plus • Innovation is inflation: 0-1% a further €5m for anticipated to add • Ireland synergy Business
Slide 15: H1 Summary
H1 Summary Track record of Margin expansion growth continues across all four segments Irish trading Earnings momentum remains challenging driven by the top line 15
Slide 16: Paul Moody, Chief Executive
Paul Moody Chief Executive 16
Slide 17: GB Soft Drinks Market Volume
GB Soft Drinks Market Volume Source: ACNielsen Scantrack Apr 2010: Take Home 17
Slide 18: GB Market Volumes And Growth Rates – H1
GB Market Volumes And Growth Rates – H1 (0.4)% 2.9% 1.2% (13.2)% 4.0% (1.4)% Carbs (6.0)% (1.2)% (3.6)% (1.8)% 15.6% 14.4% (4.1)% (1.9)% (2.6)% 1.2% (2.3)% (0.9)% DIET / LOW CAL (0.9)% (1.0)% 6.5% REGULAR / FULL SUGAR (0.2)% (0.4)% (0.3)% (8.1)% 2.6% 0.1% TOTAL MARKET UP 1.4% Stills (27.8)% 13.6% 4.
Slide 19: GB Market Volumes And Growth Rates – Last 12 weeks
GB Market Volumes And Growth Rates – Last 12 weeks (3.6)% 0.6% (1.6)% (14.7)% 2.4% (3.0)% Carbs (5.8)% (4.9)% (5.4)% (0.6)% 21.1% 19.6% (7.8)% (4.0)% (5.2)% 0.9% (3.2)% (1.5)% DIET / LOW CAL (2.6)% (2.7)% 4.5% 4.5% REGULAR / FULL SUGAR 2.0% 4.3% 2.7% (5.4)% 0.4% (0.9)% TOTAL MARKET UP 0.2% Stills (3
Slide 20: Brands Review - GB
Brands Review - GB Share growth in Take Home +0.3% The number one cola in Licensed Share growth in Take Home +0.6% Fastest growing Lemon and Lime Share growth in Take Home +0.8% Consolidating the revitalisation of Tango Source: AC Nielsen Scantrack volume to 10th April 2010 20
Slide 21: Brands Review - GB
Brands Review - GB Share growth of +1.3% in Take Home Robinsons brand innovation Share growth of +0.6% in Take Home Early signs of success for “My 5” Share growth of +1.1% in Take Home Lighter J2O launched Source: AC Nielsen Scantrack volume to 10th April 2010 21
Slide 22: Irish Soft Drinks Market Volume
Irish Soft Drinks Market Volume 30,000 2010 2009 2008 Volume (‘000s litres) 25,000 20,000 Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Source: AC Nielsen Scantrack ROI Grocery to 21st March 2010 22
Slide 23: Irish Market Volumes and Growth Rates – H1
Irish Market Volumes and Growth Rates – H1 (0.7)% (4.5)% 5.3% 2.7% (12.6)% 2.1% 10.4% 19.1% TOTAL MARKET UP 2.8% (2.3)% CARBS MARKET DOWN 1.5% 11.8% STILLS MARKET UP 9.1% (9.8)% Volume (‘000s litres) Source: AC Nielsen Scantrack ROI Grocery to 21st March 2010 23
Slide 24: The 2010 GB Innovation Programme
The 2010 GB Innovation Programme New Brand Pack & Brands Extensions Experience 24
Slide 25: A Comprehensive GB Brand-Equity Programme
A Comprehensive GB Brand-Equity Programme 25
Slide 26: Brand Investment in Ireland
Brand Investment in Ireland 26
Slide 27: In Summary
In Summary A resilient market in sustained growth Strong brands winning share Successful Innovation Strong brand-equity programme Consistent Organic Growth 27
Slide 28: Interim Results Supplemental Information
Interim Results Supplemental Information 28
Slide 29: GB Carbonates Market Volume
GB Carbonates Market Volume Source: ACNielsen Scantrack Apr 2010: Take Home 29
Slide 30: GB Stills Market Volume
GB Stills Market Volume Source: ACNielsen Scantrack Apr 2010: Take Home 30
Slide 31: Strong GB Market Positions
Strong GB Market Positions Stills (£3.4bn) Carbonates (£2.8bn) Take Home (£6.2bn) Stills (£0.6bn) Carbonates (£1.8bn) Licensed (£2.4bn) 31 Source: AC Nielsen Scantrack data to 10 April 2010 & Licensed On Trade data to January 2010 Total Coverage MAT