Britvic Share Price Posted Gains and Losses on Its Final FY Results

The Britvic Plc (LON: BVIC) share price alternated between gains and losses after releasing its final results for the year ended 30 September 2023. The company reported that its total revenue experienced robust growth, increasing by 6.6% to reach £1,748.6 million (on a statutory basis, the increase was 8.1%). 

Improvements in price and product mix primarily drove the above growth. Adjusted EBIT (Earnings Before Interest and Taxes) increased by 5.9% to £218.4 million (at actual exchange rates, it grew by 6.0%). However, reported EBIT decreased by 5.6%. 

The adjusted EBIT margin experienced a slight decline of 10 basis points, reaching 12.5% (on a statutory basis, it decreased by 20 basis points). 

Adjusting EBIT items resulted in a net charge of £36.9 million, of which £28.8 million was non-cash. Notably, this included a non-cash pension adjustment of £20.5 million related to a mutually beneficial agreement with the Trustees concerning the rate of future pension increases.

Profit after tax decreased by 11.6% to £124.0 million, primarily influenced by the impact of adjusting items. Adjusted earnings per share reached 61.0p, a substantial increase of 6.5%.

The company generated free cash flow amounting to £129.8 million, while the adjusted net debt to EBITDA ratio stood at 1.9x. The full-year dividend increased by 6.2% to 30.8p, reflecting the Board's confidence in the company's prospects and the strength of its balance sheet.

Despite challenges like tough Q4 comparisons with the hot summer of 2022 and unfavourable weather in July and August 2023, demand for the company's products remained robust. 

Britvic’s Chief Executive Officer Simon Litherland commented: “We have delivered another set of excellent results, making strong progress across our People, Planet and Performance measures. Our portfolio of family-favourite brands and focus on great tasting, healthier drinks offer both quality and value at affordable prices. We have continued to invest across our supply chain, adding capacity and upgrading technology while also building our brands and portfolio, including the acquisitions of Extra Power in Brazil and Jimmy's Iced Coffee in Great Britain. Looking ahead, we have clear strategic priorities for 2024 and an exciting programme of marketing and innovation launches coming to market.”

Britvic share price. 

The Britvic share price alternated between gains and losses today after the release of its final results.