Britvic - Raise a glass

Thursday, 29th November 2018 09:01 - by Rajan Dhall

Drinks company Britvic posted their prelim final results For the 52 weeks ended 30 September 2018. Here are some of the highlights:

·      Revenue increased 5.1% to £1,503.6m with organic revenue up 2.7%

·      Adjusted EBIT increased 5.4% with organic adjusted EBIT up 4.0% to £206.0m

·      Organic adjusted EBIT margin increased 10bps

·      Profit after tax increased 4.9% to £117.1m

·      Adjusted earnings per share increased 6.4% to 56.3p and the full year dividend increased 6.4%

It's clear that the company are performing well in a hard environment. Looking at the weekly chart below it seems that investors were not expecting the bullishness to continue. The On Balance Volume indicator was suggesting that although the trend was rising it was not back by the volume of the market (as the price was getting higher and the volume was falling off). Looking at results today I think we could have every opportunity to test the highs again. Look out for selling volume there though because I doubt all though buyers who left the stock will come back in all at once. Even on the weekly candle of the 23rd July (the one testing the high), it seems the market pulled back off best levels with high volume. It's not clear to see what's going on as the fundamentals are so good but it will be an interesting watch over the next couple of weeks.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.