Britvic Sees Fiscal Year 2020 Adjusted Profit Above Market Views; Cautions on Fiscal Year 2021 -- Update
--Consensus adjusted earnings before interest and tax for fiscal
2020 are GBP155.3 million.
--Company signed a new and exclusive 20-year franchise bottling
deal with PepsiCo Inc.
--All plastic bottles in Great Britain will be made from 100%
recycled plastic by the end of 2022
By Ian Walker
Britvic PLC said Tuesday that adjusted profit for fiscal 2020 is
expected to be slightly ahead of consensus forecasts after a
better-than-expected peak summer period, but cautioned that the
reintroduction of lockdown restrictions and continued
social-distancing measures will hurt its performance next year.
The U.K. soft-drinks maker--which houses the Fruit Shoot,
Robinsons, Tango and J2O brands among its portfolio--added that
despite this the board is confident in its long-term prospects, and
expects to rebuild investment in 2021.
It said that the company benefited from the limited re-opening
of the U.K. hospitality sector since early July and continued
strong trading in the at-home channel across its markets.
"Britvic is well-positioned to lead the long-term recovery of
the category with a portfolio of market-leading, trusted brands, a
track record of operational agility and a dedicated and committed
team," the company said.
The company hasn't provided any figures. However, a consensus
estimate puts adjusted earnings before interest and tax at 155.3
million pounds ($201.1 million), taken from FactSet and based on
four analysts' forecasts, compared with GBP214 million for the year
ended Sept. 29, 2019.
Britvic said it expects net debt to be GBP40 million-GBP50
million lower than last year, reflecting a disciplined cash
In addition, Britvic said it has signed a new and exclusive
20-year franchise bottling deal with PepsiCo Inc. for the
production, distribution marketing and sales of its carbonated soft
drink brands--including Pepsi, 7UP and Mountain Dew--in Great
The company said this new deal extends its relationship with
PepsiCo, which started in 1987, to December 2040 and includes the
Rockstar energy brand.
In addition, Britvic said that all plastic bottles in Great
Britain will be made from 100% recycled plastic by the end of 2022,
three years earlier than planned.
"Both Britvic and PepsiCo have sustainability at the heart of
their business strategies, and we will continue to work together to
deliver on our shared ambition to protect the environment and offer
healthier choices in the years ahead," Chief Executive Simon
Shares at 0740 GMT were up 41 pence, or 5.5%, at 791.50 pence.
However, they are still down 25% over the past 12 months.
Write to Ian Walker at firstname.lastname@example.org
(END) Dow Jones Newswires
October 20, 2020 04:21 ET (08:21 GMT)
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