Britvic — H1 2011 Earnings Presentation
34 slides from Britvic's earnings presentation, 2011
Slide 1: Britvic plc Interim Results 2011
Britvic plc Interim Results 2011
Slide 2: Gerald Corbett
Gerald Corbett Me gy ( — a (EE FS OB (0) rel ee <3 Ci RE WD S |
Slide 3: John Gibney, Group Finance Director
John Gibney Group Finance Director
Slide 4: Agenda
Agenda Financial performance John Gibney Britvic and the market review Paul Moody
Slide 5: Group performance in H1
Group performance in H1 +25.3% -120bps +7.9% -6.1% +8.5% Group Group Group Adjusted Interim revenue up EBITA EBITA up EPS dividend margin down increase down EBITA is defined as operating profit before exceptional and other items and amortisation. In a change to our previous policy only amortisation
Slide 6: Group financial headlines
Group financial headlines % Change H111 H110 % constant £’m £’m Change currency Group Revenue 633.1 505.3 25.3 26.1 Group EBITA 45.0 41.7 7.9 7.9 Group EBITA Margin 7.1% 8.3% (120)bps (120)bps Group Profit After Tax 20.8 20.5 1.5 2.0 Underlying Free Cashflow (64.2) (50.0) (28.4) - Group Adjusted Net
Slide 7: GB stills
GB stills H111 H110 % £’m £’m Change Volume (m. litres) 238.4 254.0 (6.1) ARP per litre (pence) 73.4 70.1 4.7 Revenue 175.1 178.0 (1.6) Brand contribution 73.4 77.8 (5.7) Brand contribution margin 41.9% 43.7% (180)bps GB ARP diluted 32% of group by stills performance brand contribution Note: All num
Slide 8: GB carbonates
GB carbonates H111 H110 % £’m £’m Change Volume (m. litres) 561.1 536.0 4.7 ARP per litre (pence) 43.8 42.3 3.5 Revenue 245.7 226.8 8.3 Brand contribution 93.3 86.6 7.7 Brand contribution margin 38.0% 38.2% (20)bps Volume and 41% of group pricing growth brand contribution Note: All numbers are pre-e
Slide 9: International
International H111 H110 % £’m £’m Change Volume (m. litres) 16.6 14.7 12.9 ARP per litre (pence) 78.3 73.5 6.5 Revenue 13.0 10.8 20.4 Brand contribution 4.8 4.1 17.1 Brand contribution margin 36.9% 38.0% (110)bps Impressive track Franchise and export record continues driving the growth to build Note
Slide 10: Ireland
Ireland % Change H111 H110 % constant £’m £’m Change currency Volume (m. litres) 106.0 114.0 (7.0) (7.0) ARP per litre (pence) 58.5 58.3 0.3 3.9 Revenue 81.9 89.7 (8.7) (5.3) Brand contribution 28.4 35.5 (20.0) (17.2) Brand contribution margin 34.7% 39.6% (490)bps (500)bps Significant Channel mix pr
Slide 11: France
France H111 H110 % £’m £’m Change Volume (m. litres) 149.1 - - ARP per litre (pence) 78.7 - - Revenue 117.4 - - Brand contribution 27.6 - - Brand contribution margin 23.5% - - Low double-digit High raw material proforma inflation impacting revenue growth margin Note: All numbers are pre-exceptional
Slide 12: A&P and fixed costs
A&P and fixed costs H111 H110 % £’m £’m Change Total A&P spend (35.4) (29.6) (19.6) A&P as a % of revenue 5.8% 6.1% 30bps Non-brand A&P (4.4) (4.8) 8.3 Fixed supply chain (61.1) (48.9) (24.9) Selling costs (64.8) (57.1) (13.5) Overheads & other (53.6) (52.5) (2.1) TOTAL FIXED COSTS (183.9) (163.3) (
Slide 13: EBIT to earnings
EBIT to earnings H111 H110 % £’m £’m Change EBIT 43.6 40.7 7.1 Interest (15.9) (12.9) (23.3) Profit before tax 27.7 27.8 (0.4) Tax (6.9) (7.3) 5.5 Effective tax rate 24.9% 26.3% 140bps Profit after tax 20.8 20.5 1.5 Interest increase due Effective tax rate to funding of France down due to acquisitio
Slide 14: Cashflow
Cashflow H111 H110 % £’m £’m Change EBIT 43.6 40.7 7.1 Depreciation & amortisation 24.8 21.3 (16.4) EBITDA 68.4 62.0 10.3 Working capital (71.4) (58.2) (22.7) Capital expenditure (23.9) (24.7) 3.2 Pension contributions (11.7) (11.6) (0.9) Other (25.6) (17.5) (46.3) Underlying free cashflow (64.2) (5
Slide 15: Exceptional and other items
Exceptional and other items £’m Britvic Ireland restructuring costs 7.5 Group data centre outsourcing 3.0 Vending operation outsourcing 6.5 Refinancing fees write-off 1.5 Fair value movement of financial instruments 2.9 Net pension curtailment gain (13.8) Net exceptional and other items 7.6 Cash ele
Slide 16: Underlying guidance - 2011
Underlying guidance - 2011 Revenue Costs Capex •Innovation adds •GB & Ireland •GB £50-55m 1-2% to the top line input-cost inflation (£60-£65m in 9-11%, France low 2012) •ARP growth driven double-digit by headline •Ireland €8m pricing, mix and •Group structure promotional investment of £2m •France €5
Slide 17: H1 summary
H1 summary Strong underlying performance Pricing growth in all markets EBITA up despite input cost inflation Dividend growth of 8.5%
Slide 18: Paul Moody, Chief Executive
Paul Moody Chief Executive
Slide 19: A strategy for organic growth
A strategy for organic growth GB • Market volume growth • Innovation growing the topline • Driving on-the-go distribution • Improving ARP through revenue management France • Delivery of the €17M synergies by 2013 • Innovation growing the topline • Exploiting group brands and capability • Launching i
Slide 20: A strategy for international expansion
A strategy for international expansion International • Building the European footprint through the acquisition of assets • Franchising the Britvic-owned brands • Continued collaboration with PepsiCo
Slide 21: 2011 GB soft drinks market
2011 GB soft drinks market Value Volume Cola Carbs Fruit carbs Lemonade Non-fruit Carbonates Glucose/Stims Volume +5.9% Mixers Value +11.0% Plain water Water plus Juice drinks Stills Pure juice Stills Sports Volume +0.8% Squash Value +5.1% Cold "Hot" Drinks Smoothies Dairy 0 500,000,000 1,000,000,00
Slide 22: GB highlights
GB highlights On-the go Carbonates Cola category strategy continues drives growth, to gain momentum. value up by 10%, Britvic value share Pepsi grows share Value share of gain by 40bps impulse of 60bps up 60bps Robinsons value Stills volume flat, Stills category growth +3.3% value growth driven outp
Slide 23: 2011 Ireland soft drinks market
2011 Ireland soft drinks market Value Volume Cola Lemon & Lime Carbs Citrus Carbonates Other carbs Volume +3.0% Mixers Value +4.3% Energy Mineral water Stills Dilutes Volume -3.2% Stills Value -3.4% Sports Fruit juice Juice drinks 0 35,000,000 70,000,000 Volume growth 0.3% Value growth 1.3% Source:
Slide 24: 2011 French soft drinks market
2011 French soft drinks market Value Volume Cola Carbs Lemon and Lime Fruit carbs Carbonates Energy Volume +4.0% Value +3.3% Carbonated water Iced tea Stills Volume +3.0% Pure juice Value +2.9% Stills Juice drinks Sport Dilutables Plain water Water volume +2bn Flavoured water 0 1,000,000,000 Volume
Slide 25: The 2011 group innovation programme
The 2011 group innovation programme First innovation New brands in in Ireland since all markets acquisition in 2007
Slide 26: Group marketing plans for 2011
Group marketing plans for 2011
Slide 27: Fruit Shoot franchise highlights
Fruit Shoot franchise highlights United States of America • Available in nearly 3000 outlets in the C&G channel • Distribution in excess of 60% • Volume growth of 40% • Introduction of no added sugar is a unique offering for the US consumer Australia • Available in 4500 grocery outlets • All the maj
Slide 28: Fruit Shoot extends its US footprint
Fruit Shoot extends its US footprint • Pepsi Bottling Ventures (PBV) is the largest independent bottler in North America • Agreement covers North and South Carolina - population 13.8m • Available in 1700+ outlets in 4 months
Slide 29: Summary
Summary Soft drinks growing value over volume Strong group-wide innovation Further evidence of franchise potential A robust balance of year plan
Slide 30: Channels to market in GB
Channels to market in GB Grocery Pubs & clubs Impulse Food service z Retail value z Retail value z Retail value z Retail value £5.2bn £2.8bn £1.6bn £2.3bn z Britvic share z Britvic share z Britvic share z Britvic share 12.8% 40.9% 9.8% 10.3% z Number 2 z Number 1 z Number 3 z Number 3 supplier suppl
Slide 31: GB soft drinks market volume
GB soft drinks market volume Source: Nielsen Scantrack April 2011: Take Home
Slide 32: Ireland soft drinks market volume
Volume litres 2011Ireland soft drinks market volume Source: Nielsen ROIScantrack March 2011: Mults/Impulse/4cts
Slide 33: 2011 French soft drinks market volume
2011French soft drinks market volume Source: IRI Census data (Total Suppliers – THG) MAT March 2011
Slide 34: Strengthening market positions
Strengthening market positions GB Take-Home (£6.8bn) Ireland Take-Home (€0.5bn) France Syrups (€247mn) GB Pubs & Clubs (£2.8bn) Ireland Licensed (€0.3bn) France Juice (€1.2bn) Source: Nielsen Scantrack data (Total Coverage MAT) to 16 April 2011 & CGA Pubs & Clubs data to February 2011 Source: Nielse