Britvic’s adjusted EBIT jumps 22% as lower costs offset the decline in revenue

In an announcement on Thursday, Britvic plc (LON: BVIC) said that its pre-tax profit saw a slight improvement in fiscal 2020 as lower costs helped even out the decline in revenue. The company, however, warned that the newly imposed COVID-19 restrictions were expected to keep its performance under pressure in the first six months of the current financial year.

The COVID-19 crisis has so far infected more than 1.5 million people in the United Kingdom and caused over 56 thousand deaths. In separate news from the United Kingdom, PayPoint plc also published its financial results for the fiscal first half on Thursday.

Britvic reports £111.2 million of pre-tax profit

For the year that concluded on 30^th September, Britvic reported £111.2 million of pre-tax profit versus the year-ago figure of £110.3 million. The owner of prominent brands like Tango and Robinsons saw a 22% year over year growth in its adjusted EBIT (earnings before interest and taxes) to £165.8 million.

The soft drinks maker also said on Thursday that its revenue slipped from £1.55 billion to £1.41 billion in fiscal 2020. On a constant-currency basis, its annual revenue was 6.8% lower than last year.

Britvic declares 21.6 pence per share of full-year dividend

Britvic declared 21.6 pence per share of full-year dividend on Thursday versus a higher 30 pence per share in fiscal 2019. The Hertfordshire-based company acknowledged COVID-19 uncertainties but said that the pandemic had also fuelled trends that could work in its favour in the upcoming months. Britvic said:

“The performance in the at-home channels has been robust, with increased demand for our trusted portfolio of brands in larger pack formats, and we have taken market share. The out-of-home channels continue to be impacted by trading restrictions and social distancing measures reducing capacity, and people continuing to work from home for the foreseeable future. We will continue to support affected customers through the current challenges, to ensure both we and they are well-placed for the recovery as it unfolds.”

Britvic shares opened about 1% up on Thursday. On a year to date basis, Britvic is still roughly 10% down in the stock market that has been volatile this year due to the ongoing Coronavirus pandemic. The stock has recovered 35% since its low in late March.

At the time of writing, Britvic is valued at £2.17 billion and has a price to earnings ratio of 25.58.