Britvic — FY2024 Earnings Presentation
28 slides from Britvic's earnings presentation, Nov 20, 2024
Slide 1: FY24 Preliminary Results Presentation
FY24 Preliminary Results Presentation 20 November 2024
Slide 2: Britvic Preliminary Results 2024
Simon Litherland Chief Executive Officer Britvic Preliminary Results 2024 Excellent progress made on our strategic priorities
Slide 3: Strong performance and excellent progress
Strong performance and excellent progress • Delivering a record-breaking performance • A winning portfolio of trusted, family favourite brands • Successfully building scale and profitability in Brazil • Accelerating growth in future scale brands • Investing to ensure long-term, sustainable growth •
Slide 4: Britvic is outperforming across all key metrics
Britvic is outperforming across all key metrics EBIT Adjusted Volume Revenue margin EBIT +3.1% +9.5% +60bps +15.2% Adjusted Employee Calories per Carbon EPS engagement serve average reduction* +13.9% 85% 21 35% 4 * Reduction in direct emissions (SBTi Scopes 1&2 since 2017, to end FY24) All financial
Slide 5: Britvic's compelling future growth algorithm
Britvic’s compelling future growth algorithm We’re an international company that makes, markets and sells 39 much-loved soft drinks brands. Our clear and compelling approach to growth helps us deliver substantial profit and earnings, enabling strong shareholder returns. Three growth accelerators Out
Slide 6: Underlying category volume growth & price/mix
With our three growth drivers all contributing to our 9.5% revenue growth in 2024 Outperforming the market with family favourite brands + Double-digit growth in Brazil + Strong double-digit growth in new spaces 52.1% 35.3% 5.5% Family favourites Brazil New growth spaces Breakdown of 9.5% plc revenue
Slide 7: A Portfolio of Family Favourite Brands: Revenue +5.5%
FAMILY FAVOURITES + BRAZIL + NEW SPACES A Portfolio of Family Favourite Brands: Revenue +5.5% CATEGORY GB - Pepsi revenue +7.5% GB - Tango revenue +11.1% • Activated biggest brand refresh for Pepsi in 14 years • New channel exclusive innovation • Exciting flavour innovation to broaden appeal • 360-d
Slide 8: A Portfolio of Family Favourite Brands: Revenue +5.5%
FAMILY FAVOURITES + BRAZIL + NEW SPACES A Portfolio of Family Favourite Brands: Revenue +5.5% CATEGORY Flavour Concentrates portfolio revenue +2.6% Ireland - Ballygowan revenue +27.3% GB - Lipton revenue +12.9% • #1 brand in each of our markets • Strong growth from core and Hint of Fruit • #1 brand
Slide 9: Accelerating growth in Brazil: Revenue +35.3%
Accelerating growth in Brazil: Revenue +35.3% FAMILY FAVOURITES + BRAZIL + NEW SPACES CATEGORY Established brands Acquired brands Brand margin revenue +20.6% revenue +32.0%* +730bps • Leveraging Britvic innovation • Extra Power growing in core and new • Benefiting from higher margin and marketing ca
Slide 10: New Growth Brands: Revenue +52.1%
New Growth Brands: Revenue +52.1% FAMILY FAVOURITES + BRAZIL + NEW SPACES CATEGORY Aqua Libra revenue +34.8% Global Premium revenue +16.9% • Revenue - packaged +109.5% and taps +9.2% • Strong performance for London Essence in GB • New pack formats and plain water to unlock growth with revenue +37.6%
Slide 11: New Growth Brands: Revenue +52.1%
New Growth Brands: Revenue +52.1% FAMILY FAVOURITES + BRAZIL + NEW SPACES CATEGORY Plenish revenue +101.6% Jimmy’s RSV +15.0%* • Plenish now #3 plant-based milk brand • Retail sales value growth significantly ahead of the category • Strong momentum with single juice shots the number in 2024 since Br
Slide 12: 2024 – an outstanding year
2024 – an outstanding year • A record-breaking financial performance • Each of the growth drivers playing a key role • Delivering on our Healthier People, Healthier Planet goals • Outperforming the market 12
Slide 13: Financial review
Rebecca Napier Chief Financial Officer Financial review A record-breaking performance
Slide 14: Excellent progress across our key financial performance metrics
Excellent progress across our key financial performance metrics 2024 Vs 2023* Volume 2,539.0m +3.1% Net Revenue £1,899.0m +9.5% A&P investment £87.2m +30.9% Adjusted EBIT £250.9m +15.2% Adjusted EBIT margin 13.2% +60bps Adjusted EPS 69.5p +13.9% DPS 34.5p** 12.0% Debt leverage 1.98x Increase 0.04x *
Slide 15: Winning across the portfolio in GB
Winning across the portfolio in GB 2024 Vs 2023 Scale Brands Revenue YOY Emerging Brands Revenue YOY Volume (litres) 1,781.9m +1.8% Average Realised Price (ARP) 72.3p +6.5% Net revenue £1,288.7m +8.5% Brand contribution £541.2m +12.8% Brand contribution margin 42.0% +160bps • Growth across our portf
Slide 16: Brazil brands delivering outstanding growth
Brazil brands delivering outstanding growth 2024 Vs 2023* Established Portfolio Revenue YOY Volume (litres) 355.0m +19.7% Average Realised Price (ARP) 56.5p +13.0% Net revenue £200.5m +35.3% Brand contribution £61.2m +77.9% Brand contribution margin 30.5% +730bps • Strong organic growth from portfol
Slide 17: Strong growth in Ireland partly offset by softness in France and other markets
Strong growth in Ireland partly offset by softness in France and other markets 2024 Vs 2023* Market Revenue YOY Volume (litres) 402.1m (3.4)% Average Realised Price (ARP) 101.9p +6.5% Net revenue £409.8m +2.8% Brand contribution £110.6m +12.6% Brand contribution margin 27.0% +240bps • Strong perform
Slide 18: Adjusting Items
Adjusting Items £m M&A and strategic restructuring costs 6.7 Ballygowan trademark impairment reversal credit (3.6) Norwich site impairment and running costs 8.4 Deposit Return Scheme set-up costs in Ireland 3.0 Carlsberg acquisition related costs 21.3 Acquisition related amortisation 11.1 Total EBIT
Slide 19: Targeted investment to support sustainable growth
Targeted investment to support sustainable growth TECHNOLOGY & BRAND-BUILDING CAPACITY DIGITAL • £25m upgrade of GB National • A&P +30.9% YOY • GB: new can line fully operational, Distribution centre another can line ordered for 2025 • Major Pepsi brand refresh • Digital manufacturing programme • Ir
Slide 20: Continued focus on Healthier People, Healthier Planet
Continued focus on Healthier People, Healthier Planet HEALTHIER PEOPLE HEALTHIER PLANET • Industry-leading 21 calories per serve through healthier consumer • Power Purchase Agreement means 75% of our GB grid electricity is choices from solar, with intensive rewilding to support biodiversity • Promot
Slide 21: Simon Litherland, Chief Executive Officer
Simon Litherland Chief Executive Officer • Update on Carlsberg transaction • Starting 2025 with a range of compelling marketing campaigns and innovation • A strategy that has delivered superior returns for shareholders
Slide 22: Update on acquisition of Britvic by Carlsberg
Update on acquisition of Britvic by Carlsberg • Britvic Board recommended offer 8 July • Britvic shareholders overwhelmingly voted in favour of offer 27 August • CMA merger inquiry launched 23 October • Phase 1 decision deadline 18 December* • European Commission process launched 12 November • Phase
Slide 23: Starting 2025 with a range of compelling marketing campaigns and innovation
Starting 2025 with a range of compelling marketing campaigns and innovation GB – Robinsons Wicked partnership GB – Plenish Nothing to hide campaign Brazil – Flying Horse brand refresh GB&I – Pepsi MAX FC25 campaign Flavour innovation – more to come! Ireland – new slimline carbs range can 23
Slide 24: A track record of sustainable Performance & Growth since IPO
A track record of sustainable Performance & Growth since 2005 IPO +3.3% * +5.4% * +7.2% * Volume CAGR Revenue CAGR EPS CAGR +270bps * 41% ** 35% ** Margin expansion Calorie reduction per serve Carbon reduction • Compared to proforma FY05 as per 2006 prelims presentation and on a pre-adjusting items
Slide 25: Our Total Shareholder Returns have significantly outperformed the FTSE
Our Total Shareholder Returns have significantly outperformed the FTSE 25
Slide 26: Summary
Summary • A record-breaking full year performance • A track record of delivering superior returns for shareholders • A well-invested business and a capable and committed team • A portfolio of market-leading brands and a range of emerging brands to access fast-growing spaces • An exciting future for
Slide 27: Follow up questions
Follow up questions Please contact Steve Nightingale, Director of Investor Relations Telephone: +44 (0) 7808 097784 Email: [email protected] 27
Slide 28: Thank you
ve BRITVIC Thank you