Britvic Plc Forecasts 2014 Profits Up At Least 10%

Britvic Plc (LON: BVIC) says 2013 profits gained 20% and confirms upbeat progress for next year.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

The shares of  Motley Fool Share Advisor favourite Britvic (LSE: BVIC) surged 26p to 634p during early trade this morning after the drinks group said its 2014 profits could improve by at least 10%.

Britvic, which owns brands such as Robinson’s, Tango and Fruit Shoot, said operating profits for next year should come in between £148m and £156m. This morning’s 2013 results showed a £135m operating profit, indicating potential profit growth of up to 16%.

The annual figures from the FTSE 250 member also showed group revenue advancing 5.2% to £1.3bn and margins improving from 9.2% to 10.4%. Britvic claimed underlying free cash flow surged 67% to £103m and helped to reduce net debt by £44m to £402m.

Adjusted earnings gained 29% to 35.2p per share while the dividend was lifted 4% to 18.4p per share.

Simon Litherland, the chief executive officer of Britvic, said:

We have delivered a strong financial performance in a year of significant change for our business.  We have grown revenue and price in all of our business units and gained market value share.

Mr Litherland also said he expected the group to deliver £30m per annum of cost savings from 2016 and revealed a new 15-year bottling arrangement with PepsiCo.

Based on this morning’s results and price reaction, Britvic’s shares may trade on a P/E of 18 and offer a yield of 2.9%.

The shares have been wonderful performers during the last 18 months, having risen 132% since their mid-2012 low of 273p.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

> Maynard does not own any share mentioned in this article. The Motley Fool has recommended shares in Britvic.

More on Investing Articles

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

2 of the best stocks to buy now with £500

I think that Berkshire Hathaway and Activision Blizzard are two of the best shares to buy today. I think they…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

I bought 10 cheap shares. Here’s what happened next

After recent price falls, we bought 10 cheap shares for extra passive income in future. This mini-portfolio offers a tasty…

Read more »

Close up view of Electric Car charging and field background
Investing Articles

Is now a good time to buy Chinese EV stocks as economic growth slows?

Chinese EV stocks tend to trade at a considerable discount to their US counterparts. And that's one reason I like…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

I’d happily start investing in today’s stock market – here’s why

The stock market has been moving up even as the economy has been looking shakier. Would our writer start investing…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

Up 22% in a month! This FTSE 100 takeover target could rise further

A takeover bid for an FTSE 100 firm is big news. Here's what I'm doing about RS Group shares after…

Read more »

Young female analyst working at her desk in the office
Investing Articles

Income shares could help me turn £300 into £500. Here’s how

Our writer believes investing in the right income shares over the long term could be lucrative. Here is his approach.

Read more »

Bearded man writing on notepad in front of computer
Investing Articles

I bought these FTSE 250 shares for fat dividends!

These two FTSE 250 shares have gained in value since I bought them recently. But I still see these stocks…

Read more »

Shot of a young Black woman doing some paperwork in a modern office
Investing Articles

Should I buy this REIT to add to the others that pay me juicy dividends?

Jabran Khan looks closer at this real estate investment trust (REIT) and decides if he would add the shares to…

Read more »