Britvic : Preliminary results 2021

Emerging stronger, confident in future growth prospects

For the year ended 30 September 2021

Group Financial Headlines:

• Revenue increased 6.6%* to £1,405.1m (reported -0.5%)
• Adjusted EBIT increased 10.0%* to £176.5m (reported +6.5%), statutory EBIT increased 23.3%
• Adjusted EBIT margin increased 40bps* to 12.6% (reported +90bps)
• Profit after tax increased 9.1% to £103.2m
• Adjusted earnings per share of 44.3p, up 2.5%, impacted by a one-off deferred tax charge of £11.2m
• Record free cash flow generation of £132.7m enabling a £31.9m reduction in adjusted net debt
• Full year dividend +12.0%, reflecting the board's confidence in our prospects and strong balance sheet

Highlights:

• Revenue growth in GB and Brazil, led by our portfolio of family favourite brands
• Continued growth in At-Home channels with Out-of-Home rebounding in the second half
• Margin rate progression while rebuilding investment in our people, brands, and infrastructure
• Continued progress against our strategic objectives including:
  • Accessing new growth spaces - Plenish, Aqua Libra Co and Rockstar
  • Simplifying our Irish business with the closure of Counterpoint
  • Converting all GB immediate consumption packs to 100% rPET
• Strong cash generation with adjusted net debt/EBITDA leverage ratio back to 2019 level

Current Trading & FY22 Outlook:

• Encouraging trading with volumes in first six weeks of the year ahead of FY21 and FY20
• Investing behind growth drivers to accelerate long-term revenue and profit trajectory
• Confident in making further progress with revenue, profit and margin growth in 2022 despite inflationary cost pressures

	Year ended 30 September 2021 £m	Year ended 30 September 2020 £m	% change actual exchange rate (AER)	Underlying % change constant exchange rate*
Revenue Adjusted EBIT Adjusted EBIT margin Adjusting EBIT items** Statutory EBIT Statutory EBIT margin Profit after tax Basic EPS Adjusted EPS Full year dividend per share Adjusted net debt/EBITDA	1,405.1 176.5 12.6% (15.8) 160.7 11.4% 103.2 38.7p 44.3p 24.2p 2.1x	1,412.4 165.8 11.7% (35.5) 130.3 9.2% 94.6 35.6p 43.2p 21.6p 2.4x	(0.5)% 6.5% 90bps 55.5% 23.3% 220bps 9.1% 8.7% 2.5% 12.0% (0.3)x	6.6% 10.0% 40bps

* Adjusted for constant currency, the French private label juice business that was disposed of in 2020 and the Ireland agency brands which ceased trading in March 2021.

** Adjusting EBIT items of £15.8m and £0.1m included in net finance costs are detailed on page 11.

Simon Litherland, Chief Executive Officer commented:

"This year we have recovered strongly from the effects of the pandemic, with underlying revenue, margin, and profit all in growth. Our disciplined cash management enabled us to pay down debt and to increase our dividend by 12.0%, reflecting our confidence in the business.

We continue to invest in our brands, people, and infrastructure. Our portfolio of trusted family favourite brands has led the growth across our business units, and we continue to access new growth spaces through innovation, the acquisition of Plenish and the relaunch of Rockstar. We have simplified the business in Ireland with the closure of Counterpoint. Our Healthier People, Healthier Planet sustainability programme has also progressed well, with the rollout of recycled PET in GB, and carbon reduction initiatives across the business.

Looking ahead, as we execute our growth strategy, I am confident that we will continue to deliver consistent returns to shareholders. While there are multiple operational headwinds leading to increased inflation, we are confident we will mitigate them through a combination of our agile and resilient supply chain, revenue management and cost saving actions. In 2022 we anticipate making further progress with revenue, profit and margin ahead of 2021."

For further information please contact:

Investors:
Joanne Wilson (Chief Financial Officer)	[phone]
Steve Nightingale (Director of Investor Relations)	[phone]

Media:
Kathryn Partridge (Director of Corporate Affairs)	[phone]
Stephen Malthouse (Headland)	[phone]

There will be a webcast of the presentation given today at 09:00am by Simon Litherland (Chief Executive Officer) and Joanne Wilson (Chief Financial Officer). The webcast will be available at www.britvic.com/investors with a transcript available in due course. To ask a question on the webcast, please dial [phone] and enter the confirmation code 6714568.

Read the full announcement