Britvic (BVIC) - Half Year Report

[IanTHughes]

Group Financial Headlines:
· Revenue increased 4.5% to £733.2m with organic revenue** up 2.8%
· Adjusted EBIT* increased 9.4% to £80.5m, with organic adjusted EBIT* up 6.0%
· Organic adjusted EBIT margin* increased 40bps
· Adjusted profit after tax* increased 12.2% to £49.8m
· Profit after tax decreased 13.7% to £33.3m, including £21.6m of planned business capability programme costs
· Adjusted earnings per share* increased 12.2% to 21.2p and the interim dividend increased 9.7%

Strategic highlights:
· Strong growth in Q2, overcoming poor weather in GB, Ireland and France, and absorbing Palmer & Harvey bad debt provision of £3.3m
· Positive price/mix and volume delivering balanced revenue growth
· Entering the soft drinks industry levy environment in GB with strong momentum, with Robinsons back in growth and Pepsi MAX continuing to outperform a highly competitive cola category
· Margin growth delivered through disciplined revenue management and cost control
· Good progress made on Business Capability Programme, capital spend in final phase, with cost and commercial benefits being delivered

Dividends

The Board is recommending an interim dividend of 7.9p per share, an increase of 9.7% on the dividend declared last year, with a total value of £20.9m. The interim dividend for 2018 will be paid on 13 July 2018 to shareholders on record as at 1 June 2018. The ex-dividend date is 31 May 2018

Full details can be found here

https://www.investegate.co.uk/britvic-p ... 00079472O/

Nice increase in the Interim Dividend



Ian

[richfool]

Thanks for that update Ian.

...And share price currently up 6% at 605p.

I thought they might have been troubled by the "sugar tax".

[IanTHughes]

...And share price currently up 6% at 605p.

Yes indeed but to 805p. Obviously this is not a current HYP selection but back in August 2012 when I bought in at around 320.25p, the yield was well over 5%. The price jumped significantly (80% to 100%) when the proposed merger with A G BARR (BAG) was put forward about a month after my purchase.

The merger with BAG was scotched by monopoly concerns but the share price stayed up. Since then the dividend has increased steadily but thanks to the price rising as well, it has remained at best a medium yielder. I am of course very happy to hold.


Ian