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United Kingdom and Soft Drinks

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United Kingdom and Soft Drinks
Company Name: Britvic plc (LSE: BVIC)

Sector: Consumer Goods
Industry: Soft drinks

Proposal: Buy 900 shares at 704.50 GBp

Close at profit: 730 GBp

OVERVIEW
Britvic Soft Drinks is one of the two leading soft drinks businesses in the UK, producing over 1.4 billion litres annually.
It supplies a wide range of products to approximately 200,000 outlets across the country.
Britvic has also been growing its reach into other territories, in Ireland, France, and particularly in the United States.
Britvic's management team has successfully developed the business through a clear strategy of organic growth and international expansion based on creating and building scalable brands.
Has exclusive bottling agreements with PepsiCo in the UK and Ireland for global brands such as Pepsi and 7UP.

KEY FIGURES
Constituent of the FTSE 250 Index
Market capitalisation: £1,746.09m
#1 supplier of still soft drinks in the UK
Group Revenue: +2.4%
Group EBITA: +17.3%
Adjusted Earnings per Share: 35.2p in 2013 to 41.8p in 2014
Dividend per Share: 18.4p in 2013 to 20.9p in 2014
1-Year return: +4.74%
Current P/E Ratio (ttm): 19.3014
5-Year Dividend Growth: 6.86%
The company said marketing plans and expected cost savings this year meant it maintained guidance for a full-year operating profit of between 164 and 173 million pounds, versus 158.1 million pounds in 2014.

Comparison of Britvic with its main competitor Nichols (1-year chart)

FUTURE PLANS
The shares have a 3.5pc prospective dividend yield on offer, and that is set to increase by 10pc during the next two years, so the shares remain a solid hold.
Has strong marketing plans and a significant innovation pipeline in place for 2015

KEY RISKS
Operating in an extremely difficult UK drinks market
The big supermarkets are cutting prices to win back customers from the discounters
Increased regulation such as a sugar tax or a washout summer

BROKER RATINGS

SUMMARY

Britvic plc: Buy

Current price: 704.50 GBp

Number of shares:

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