Britvic — FY2012 Earnings Presentation
28 slides from Britvic's earnings presentation, Nov 27, 2012
Slide 1: Britvic plc Preliminary results 2012
Britvic plc Preliminary results 2012
Slide 2: Agenda
Agenda Financial performance John Gibney Britvic and the market review Paul Moody
Slide 3: John Gibney, Group Finance Director
John Gibney Group Finance Director
Slide 4: Group performance
Group performance (0.8)% (15.5)% (160)bps (17.8)% 4.7% £5.3m 17.7p Group Group Group EBITA Adjusted Robust cash Reduction in Full year revenue EBITA margin EPS of generation net debt to dividend held at £1,256.4m £115.6m 9.2% 27.2p £62.1m £446.7m 17.7p EBITA is defined as operating profit before exc
Slide 5: Group performance
Group performance (0.8)% (15.5)% (160)bps (17.8)% 4.7% £5.3m 17.7p Group Group Group EBITA Adjusted Robust cash Reduction in Full year revenue EBITA margin EPS of generation net debt to dividend held at £1,256.4m £115.6m 9.2% 27.2p £62.1m £446.7m 17.7p EBITA is defined as operating profit before exc
Slide 6: GB stills
GB stills 2012 2011 % £’m £’m Change Volume (m. litres) 449.2 493.5 (9.0) ARP per litre (pence) 71.6p 71.2p 0.6 Revenue 321.7 351.2 (8.4) Brand contribution 141.2 150.1 (5.9) Brand contribution margin 43.9% 42.7% 120bps Material impact from Robinsons strong second recall of Fruit Shoot half performa
Slide 7: GB carbonates
GB carbonates 2012 2011 % £’m £’m Change Volume (m. litres) 1,154.1 1,130.5 2.1 ARP per litre (pence) 44.9p 44.5p 0.9 Revenue 517.9 502.6 3.1 Brand contribution 188.7 189.1 (0.2) Brand contribution margin 36.4% 37.6% (120)bps Pepsi grew both volume Growth in large packs as and value share consumers
Slide 8: International
International 2012 2011 % £’m £’m Change Volume (m. litres) 38.4 37.8 1.6 ARP per litre (pence) 76.3p 77.0p (0.9) Revenue 29.3 29.1 0.7 Brand contribution 8.3 10.9 (23.9) Brand contribution margin 28.3% 37.5% (920)bps Performance impacted by Continued investment in the Fruit Shoot recall emerging US
Slide 9: Ireland
Ireland % Change 2012 2011 % constant £’m £’m Change currency Volume (m. litres) 205.1 210.8 (2.7) (2.7) ARP per litre (pence) 53.3p 58.7p (9.2) (3.6) Revenue 138.7 162.8 (14.8) (9.6) Brand contribution 44.6 57.8 (22.8) (18.2) Brand contribution margin 32.2% 35.5% (330)bps (330)bps Fall in sale of 3
Slide 10: France
France % Change 2012 2011 % constant £’m £’m Change currency Volume (m. litres) 278.3 286.0 (2.7) (2.7) ARP per litre (pence) 89.4p 85.6p 4.4 10.9 Revenue 248.8 244.7 1.7 8.0 Brand contribution 59.2 62.0 (4.5) 1.4 Brand contribution margin 23.8% 25.3% (150)bps (150)bps Syrups portfolio continued Str
Slide 11: A&P and fixed costs
A&P and fixed costs 2012 2011 % £’m £’m Change Total A&P spend 62.5 62.8 0.5 A&P as a % of revenue 5.1% 5.0% (10)bps Non-brand A&P 7.8 8.0 2.5 Fixed supply chain 100.3 111.1 9.7 Selling costs 118.0 121.7 3.0 Overheads & other 103.2 94.1 (9.7) TOTAL FIXED COSTS 329.3 334.9 1.7 A&P investment Underlyi
Slide 12: EBIT to earnings
EBIT to earnings % Change 2012 2011 Constant £’m £’m Currency EBIT 112.7 135.0 (15.9) Interest (28.3) (29.9) 6.0 Profit before tax 84.4 105.1 (18.8) Tax (21.5) (27.2) 21.0 Effective tax rate 25.5% 25.9% 40bps Profit after tax 62.9 77.9 18.0 Interest benefit from bank ETR at lower end of refinancing
Slide 13: Exceptional and other items
Exceptional and other items £’m Costs associated with the relocation of the group head office and restructuring 4.9 between group and the business units Ireland pension gain, SAP impairment and restructuring costs (1.7) Fees related to proposed merger with A.G.Barr and terminated acquisition 3.1 Fai
Slide 14: Cash flow
Cash flow 2012 2011 % £’m £’m Change EBIT 112.7 135.0 (16.5) Depreciation & amortisation 45.4 50.7 (10.5) EBITDA 158.1 185.7 (14.9) Working capital 2.7 (13.5) 120.0 Capital expenditure (46.7) (49.0) 4.7 Pension contributions (10.8) (11.4) 5.3 Other (41.2) (52.5) 21.5 Underlying free cash flow 62.1 5
Slide 15: Summary
Summary Strong business response to the Fruit Shoot recall Rigorous cost discipline An impressive FCF performance and reduction in debt Full year dividend maintained
Slide 16: Paul Moody, Chief Executive
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Slide 17: Near-term priorities
Near-term priorities 1. Re-establish Fruit Shoot following the recall in July 2. Build and realise the value of our emerging US Fruit Shoot business 3. Rigorous cost management 4. A focus on cash generation 5. Drive an improved performance from the core brand portfolio
Slide 18: Re-establish Fruit Shoot
Re-establish Fruit Shoot • “Back soon” campaign to keep in touch • In-store within the expected 6 week timeframe • Major “we’re back” media campaign • Aligned “netmums” activity • Brand measures back towards pre-recall levels • On-track for full supply by Jan 2013
Slide 19: Build and realise the value of the emerging US Fruit Shoot business
Build and realise the value of the emerging US Fruit Shoot business • A new agreement for distribution in Virginia with Pepsi- Cola Bottling of Central Virginia • The longest established Pepsi franchise in the US • Agreements now in place with 5 PepsiCo bottlers • Distribution agreements for 9 state
Slide 20: A strong emphasis on cash and rigorous cost management
A strong emphasis on cash and rigorous cost management • Underlying Fixed costs down 3.9% • Continued investment in Franchise • Free cash flow generation of £62.1m • Up on 2011 despite negative impact of Fruit Shoot recall • A £5.3m reduction in adjusted net debt
Slide 21: Driving the core portfolio - 2012 market overview
Driving the core portfolio - 2012 market overview GB France Ireland Take-home Take-home Take-home market volume market volume market volume growth growth decline of 0.3% of 1.8% of 2.2% Source: Nielsen take-home scantrack September 2012. Pubs and Clubs CGA data July 2012. IRI data to September.
Slide 22: Driving the core portfolio - 2012 market overview
Driving the core portfolio - 2012 market overview GB France Ireland Take-home Take-home Take-home market volume market volume market volume growth growth decline of 0.3% of 1.8% of 2.2% Source: Nielsen take-home scantrack September 2012. Pubs and Clubs CGA data July 2012. IRI data to September.
Slide 23: Driving the core portfolio - Pepsi
Driving the core portfolio - Pepsi • In a year of major sporting activity Pepsi has achieved substantial volume and value share growth • New pack innovation in 250ml cans has grown the category • Has also benefited Tango and 7Up • Marketing campaigns to win tickets for the X Factor and a football th
Slide 24: Driving the core portfolio - Robinsons
Driving the core portfolio - Robinsons • A major media campaign across TV, print & digital • Improved communication of the double-concentrate message • Two quarters of successive share growth • Value share now back to its historical high
Slide 25: Summary
Summary The emerging US business continues to grow
Slide 26: Q&A
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Slide 27: Appendix
Appendix
Slide 28: Market positions
Market positions GB Take-Home £7.2bn Ireland Take-Home €500m France Juice €1.3bn Other Britvic Other Britvic 13% 11% 12% Other 4% 14% Britvic AG Barr 3% Richmond 4% 24% Innocent 3% Danone 4% Tropicana Red Bull 3% 12% CCE Private Label Tropicana 5% 28% Private Label 8% Joker 59% Danone 5% 11% GSK 13%