Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

Britvic’s recovery continued in H2, with continued growth in at-home channels while out-of-home rebounded. GB and Brazil both posted revenue growth, while Other International was affected by weaker performance in France, caused – among other things – by poor summer weather. Organic revenue growth was 6.6%, while adjusted EBIT was up 10% on the same basis. Adjusted EPS was up 2.5% to 44.3p, as it was adversely affected by a one-off deferred tax charge. The dividend per share is 24.2p, up 12%. Current trading is encouraging, with volumes in the first six weeks of the year ahead of both FY21 and FY20. Management remains confident in making further progress with revenue, profit and margin growth in 2022 despite inflationary cost pressures.

Britvic’s recovery continued in H2, with continued growth in at-home channels while out-of-home rebounded. GB and Brazil both posted revenue growth, while Other International was affected by weaker performance in France, caused – among other things – by poor summer weather. Organic revenue growth was 6.6%, while adjusted EBIT was up 10% on the same basis. Adjusted EPS was up 2.5% to 44.3p, as it was adversely affected by a one-off deferred tax charge. The dividend per share is 24.2p, up 12%. Current trading is encouraging, with volumes in the first six weeks of the year ahead of both FY21 and FY20. Management remains confident in making further progress with revenue, profit and margin growth in 2022 despite inflationary cost pressures.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Our neutral and cautious outlook continues to be reinforced by market dynamics that have generally deteriorated over the past week. RS improvement for defensives (Utilities, Staples, Real Estate, and Health Care) continues to make these Sectors attractive. Meanwhile, not one MSCI ACWI Sector is breaking down, and important price support levels are holding in the US, Europe, and Japan. Until supports start to break we cannot be bearish, though we would not be surprised to see ~5% downside with potential for more.

Our neutral and cautious outlook continues to be reinforced by market dynamics that have generally deteriorated over the past week. RS improvement for defensives (Utilities, Staples, Real Estate, and Health Care) continues to make these Sectors attractive. Meanwhile, not one MSCI ACWI Sector is breaking down, and important price support levels are holding in the US, Europe, and Japan. Until supports start to break we cannot be bearish, though we would not be surprised to see ~5% downside with potential for more.

Crude Oil and Copper Breakdowns Reinforce Our Concerns; Defensive Sectors Remain Attractive

Britvic’s Healthier People, Healthier Planet strategy proactively addresses the key environmental, social and governance (ESG) issues it faces, including consumers’ health, packaging and waste, water usage, and supply chain management. Its sustainability targets for 2025 are the continuation of ongoing actions to meet stakeholders’ expectations and contribute to a more sustainable future. At the same time, management looks far beyond the targets and takes a broad ESG approach towards both business procedures and its staff.

Britvic’s Healthier People, Healthier Planet strategy proactively addresses the key environmental, social and governance (ESG) issues it faces, including consumers’ health, packaging and waste, water usage, and supply chain management. Its sustainability targets for 2025 are the continuation of ongoing actions to meet stakeholders’ expectations and contribute to a more sustainable future. At the same time, management looks far beyond the targets and takes a broad ESG approach towards both business procedures and its staff.

Britvic - Actively addressing sustainability challenges

As expected, Britvic witnessed strong growth during H1 in at-home channels and gained share in GB and Brazil, though restrictions continued to affect performance in the hospitality and on-the-go consumption segments. H1 revenue declined 6.3% on a like-for-like and constant currency basis, while adjusted EBIT was down 15.4% on this basis, and adjusted EPS was down 20%. The interim dividend has been reinstated at 6.5p per share. Management continued to focus on cash and cost efficiency to mitigate the impact of the pandemic as much as possible. Trading has been encouraging in the first weeks of H2 as lockdown measures have been eased in the UK. Planned investment will increase in H2 to capitalize on market opportunities and drive long-term growth. The mix is expected to improve as on-the-go consumption recovers and at-home growth moderates.

As expected, Britvic witnessed strong growth during H1 in at-home channels and gained share in GB and Brazil, though restrictions continued to affect performance in the hospitality and on-the-go consumption segments. H1 revenue declined 6.3% on a like-for-like and constant currency basis, while adjusted EBIT was down 15.4% on this basis, and adjusted EPS was down 20%. The interim dividend has been reinstated at 6.5p per share. Management continued to focus on cash and cost efficiency to mitigate the impact of the pandemic as much as possible. Trading has been encouraging in the first weeks of H2 as lockdown measures have been eased in the UK. Planned investment will increase in H2 to capitalize on market opportunities and drive long-term growth. The mix is expected to improve as on-the-go consumption recovers and at-home growth moderates.


As expected, Britvic witnessed strong growth during H1 in at-home channels and gained share in GB and Brazil, though restrictions continued to affect performance in the hospitality and on-the-go consumption segments. H1 revenue declined 6.3% on a like-for-like and constant currency basis, while adjusted EBIT was down 15.4% on this basis, and adjusted EPS was down 20%. The interim dividend has been reinstated at 6.5p. Management continued to focus on cash and cost efficiency to mitigate the impact of the pandemic as much as possible. Trading has been encouraging in the first weeks of H2 as lockdown measures have been eased in the UK. Planned investment will increase in H2 to capitalise on market opportunities and drive long-term growth. The mix is expected to improve as on-the-go consumption recovers and at-home growth moderates.

As expected, Britvic witnessed strong growth during H1 in at-home channels and gained share in GB and Brazil, though restrictions continued to affect performance in the hospitality and on-the-go consumption segments. H1 revenue declined 6.3% on a like-for-like and constant currency basis, while adjusted EBIT was down 15.4% on this basis, and adjusted EPS was down 20%. The interim dividend has been reinstated at 6.5p. Management continued to focus on cash and cost efficiency to mitigate the impact of the pandemic as much as possible. Trading has been encouraging in the first weeks of H2 as lockdown measures have been eased in the UK. Planned investment will increase in H2 to capitalise on market opportunities and drive long-term growth. The mix is expected to improve as on-the-go consumption recovers and at-home growth moderates.

United Kingdom

Britvic Plc supplies a wide range of soft drinks. The Company manufactures and markets its own brand of soft drinks as well as supplies drinks manufactured by other companies.

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Britvic PLC (BVIC LN)

Britvic - Emerging stronger

Britvic’s recovery continued in H2, with continued growth in at-home channels while out-of-home rebounded. GB and Brazil both posted revenue...

Edison Investment Research

Crude Oil and Copper Breakdowns Reinforce Our Concerns; Defensive Sectors Remain Attractive

Our cautious outlook is reinforced by ongoing developments. Relative strength improvement for defensives (Utilities, Staples, Real Estate, Health...

Vermilion Research

Britvic - Actively addressing sustainability challenges

Britvic’s Healthier People, Healthier Planet strategy proactively addresses the key environmental, social and governance (ESG) issues it faces,...

Edison Investment Research

Britvic - Optimistic about recovery

As expected, Britvic witnessed strong growth during H1 in at-home channels and gained share in GB and Brazil, though restrictions continued to...

Edison Investment Research

Britvic - Optimistic about recovery

As expected, Britvic witnessed strong growth during H1 in at-home channels and gained share in GB and Brazil, though restrictions continued to...

Edison Investment Research

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