Britvic Regulatory News (BVIC)

Britvic plc Interim Results - 19 May 2016

Britvic plc today reports its interim results for the 28 weeks ended 10 April 2016. All numbers quoted are on a constant currency basis and before exceptional and other items, unless otherwise stated(1)(2)

Group Financial Headlines:

· H1 revenue increased 5.1% to £678.0m and 4.3% based on actual exchange rates (AER)

o Organic revenue (excluding Brazil) declined 1.8%

o EBITA increased 7.1% to £69.0m and 6.6% (AER), organic EBITA increased 3.1%

o EBITA margin improvement of 20bps, organic EBITA margin up 60bps

· Profit after tax increased 7.5% to £41.7m

· Adjusted earnings per share increased 6.1% and 5.5% (AER)

· Interim dividend of 7.0p, an increase of 4.5%

· Adjusted net debt to EBITDA ratio improved 0.2x on last half-year to 2.0x

· Full year EBITA guidance remains unchanged at £180m to £190m

Strategic Highlights:

· Continued market share growth in all of our key markets

· New production line and warehousing now operational at our Leeds facility

· New seven year deal with Subway in GB for both Britvic and Pepsi brands from June

· Fruit Shoot multi-pack is being launched in USA grocery channel

· Brazil H1 revenue 8.6% ahead of last year, integration largely completed

Simon Litherland, Chief Executive Officer commented:

"We have reported a 7.1% increase in EBITA in the first half of the year despite the challenging customer environment and continued price deflation in our core markets. We have outperformed the soft drinks category in each of our core markets, gaining market share as a result. Our recent acquisition in Brazil is growing ahead of last year and Fruit Shoot multi-pack is being launched in the USA.

We continue to invest behind the longer term drivers of growth - supply chain efficiency in GB, innovation and our international businesses - and I remain excited about our ability to drive sustainable revenue growth in the years ahead. With the key summer trading period ahead of us, strong marketing plans for the rest of the year and continued cost control, we remain on-track to deliver EBITA in the range of £180m to £190m for the full year."

For further information please contact:

Investors:

Media:

There will be a live webcast of the presentation given today at 10am by Simon Litherland (Chief Executive Officer) and Mathew Dunn (Chief Financial Officer).

The webcast will be available at www.britvic.com/investors with a transcript available in due course.

Definitions

(1) Where appropriate, comparative results are quoted using constant exchange rates. Constant currency change removes the impact of exchange rate movements during the period by retranslating prior period foreign currency denominated results of the group at current period exchange rates to aid comparability.

(2) All numbers quoted are before exceptional and other items, unless otherwise stated.

(3) Volume is defined as number of litres sold, excluding factored brands sold by Counterpoint in Ireland. No volume is recorded in respect of international concentrate sales with the exception of USA multi-pack sales.

(4) ARP is defined as average revenue per litre sold, excluding factored brands and concentrate sales.

(5) Group revenue is defined as sales achieved by the group net of price promotional investment and retailer discounts.

(6) Brand contribution is defined as revenue less material costs and all other marginal costs that management considers to be directly attributable to the sale of a given product. Such costs include brand specific advertising and promotion costs, raw materials, and marginal production and distribution costs.

(7) Brand contribution margin is a percentage measure calculated as brand contribution, divided by revenue. Each business unit's performance is reported down to the brand contribution level.

(8) Group EBITA is defined as operating profit before exceptional and other items and amortisation. Only amortisation attributable to intangibles related to acquisitions is added back, in the period this is £3.6m (2015: £1.5m). EBITA margin is EBITA as a proportion of group revenue.

(9) Group EBIT is defined as operating profit before exceptional and other items. EBIT margin is EBIT as a proportion of group revenue.

(10) Adjusted earnings per share amounts are calculated by dividing adjusted earnings by the average number of shares during the period. Adjusted earnings is defined as the profit/(loss) attributable to ordinary equity shareholders before exceptional and other items adjusted for the adding back of acquisition related amortisation. Average number of shares during the period is defined as the weighted average number of ordinary shares outstanding during the period excluding any own shares held by Britvic that are used to satisfy various employee share-based incentive programmes. The weighted average number of ordinary shares in issue for adjusted earnings per share for the period was 261.1m (2015: 247.3m).

 (11) Underlying free cash flow is defined as net cash flow excluding movements in borrowings, dividend payments and exceptional and other items.

(12) Group adjusted net debt is defined as group net debt, adding back the impact of derivatives hedging the balance sheet debt.

Reconciliation from actual exchange rate to constant exchange rate

Notes to editors

About Britvic

Britvic is one of the leading branded soft drinks businesses in Europe. The company combines its own leading brand portfolio including Robinsons, Tango, J2O, Fruit Shoot, Teisseire and MiWadi with PepsiCo brands such as Pepsi, 7UP and Mountain Dew Energy which Britvic produces and sells in GB and Ireland under exclusive PepsiCo agreements.

Britvic is the largest supplier of branded still soft drinks in Great Britain ("GB") and the number two supplier of branded carbonated soft drinks in GB. Britvic is an industry leader in the island of Ireland with brands such as MiWadi and Ballygowan, in France with brands such as Teisseire and Fruité and in Brazil with Maguary and Dafruta. Britvic is growing its reach into other territories through franchising, export and licensing. Britvic's management team has successfully developed the business through a clear strategy of organic growth and international expansion based on creating and building scale brands. Britvic is listed on the London Stock Exchange under the code BVIC and is a constituent of the FTSE 250 index.

Cautionary note regarding forward-looking statements

This announcement includes statements that are forward-looking in nature. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by the Listing Rules and applicable law, Britvic undertakes no obligation to update or change any forward-looking statements to reflect events occurring after the date such statements are published.

Market data

GB take-home market data referred to in this announcement is supplied by Nielsen and runs to 9 April 2016. ROI take-home market data is supplied by Nielsen and runs to 20 March 2016. French market data is supplied by IRI and runs to 4 April 2016. Brazil market data is supplied by Nielsen and runs to 31 March 2016.

Next scheduled announcement

Britvic will publish its quarter three trading statement on 21 July 2016.

Chief Executive Officer's Strategic Review

It has been three years since I outlined our strategy to generate shareholder value through the growth of our own brands in the kids, family and adult categories as well as maximising the power of our PepsiCo relationship. In that time, despite increasingly challenging market conditions, we have consistently grown earnings whilst investing in the long-term drivers of growth. The first half of 2016 is no exception and we have made further progress against our strategic priorities.

"Generate profitable growth in our core markets"

As anticipated, trading conditions in GB, France and Ireland have continued to remain difficult this year and, with the exception of Ireland, show no signs of improvement. Encouragingly we have continued to increase our share of the soft drinks category in each of these markets, reflecting the strength of our brand portfolio and commercial execution.

In GB, our carbonates portfolio, led by Pepsi Max, has had another particularly strong half. The Max proposition of no sugar with the full taste of Pepsi continued to resonate with consumers, supported by compelling marketing plans such as the sponsorship of the Champions League football tournament.

The GB stills portfolio had a disappointing first half of the year. Robinsons short term performance has been impacted by our decision to remove the added sugar range and very competitive own label pricing. As the category leader, removing added sugar from this family brand is appropriate for the long term as consumers seek 'Better for You' soft drinks. In addition we have improved the taste, added new flavours to the range and we are adding new pack sizes in the second half of the year to unlock specific channel growth opportunities. The brand's consumer perception metrics continue to improve following the re-launch in May last year.

Whilst Fruit Shoot gained market share, its decline year on year reflected the weaker kids category. Our innovation launches, including Teisseire and J20 Spritz, continue to grow and give us further confidence that we will improve our stills performance.

I am delighted that we have recently commenced a seven year agreement with Subway in GB, who have over two thousand outlets today and plans to expand further. This represents a major win for our GB business and demonstrates the value of our industry leading portfolio of low and no sugar brands.

In France the soft drinks market has weakened this first half with both volume and value declining, reflecting the increasingly challenging trading conditions. Our revenue decline this year is driven by private label sales whilst our branded business, led by Teisseire and Fruit Shoot, has grown. Our branded business now accounts for 60% of France revenues compared to 50% on acquisition in 2010. This summer we will be sponsoring the iconic Tour de France cycle race again, which offers excellent exposure for our brands both in France and internationally.

Our performance in Ireland has been strong and we have now seen revenue growth in four of the last five quarters. Our innovation launches, led by the no sugar Club Zero and MiWadi Zero, are proving to be very popular and continue to bring new consumers into our brands. We are about to launch a super concentrated version of MiWadi, following the launch of similar formats under the Robinsons and Teisseire brands. These formats have been developed for consumption "on the go", enabling consumers to hydrate in a tasty and low calorie way wherever they are.

"Realise global opportunities in kids, family and adult categories"

Earlier this year we acquired the Ebba business in Brazil and I am delighted to welcome all of our new colleagues into the group. Their brands are market leaders in a category we know very well, dilutes, and also have a strong position in the broader nectars category. These brands and the strength of Ebba's route to market provide a strong platform to grow our presence in the kids, family and adult categories.

Whilst we have only owned the business for six months, the integration process is largely complete and we are working closely with the strong management team to deliver the acquisition business case in the months and years ahead. We will at least double EBITDA by 2020, through reinvigorating the core concentrates category, accelerating growth in ready to drink nectars and introducing Britvic brands and innovation to the market. We have delivered a strong performance in the first six months with the Maguary and Dafruta brands taking value share, both volume and revenue is ahead of last year.

In November 2015 we announced that we would launch Fruit Shoot multi-pack into the USA grocery channel with Advantage Sales & Marketing as our partner. We have secured listings with some major chains in the USA, including Walmart, Kroger and the Texas-based retailer HEB and we expect the brand to reach circa 20% distribution by summer. In recent weeks we have made our first deliveries and we look forward to the year ahead as we invest to build the brand in the USA. The more established single serve Fruit Shoot proposition is now rolling out across the Pizza Hut estate, an excellent shop window to drive awareness and trial with US consumers.

"Continue to step-change our business capability"

 At the end of last year we announced a number of changes in our executive team with a new CFO and new Managing Directors of our International and Brazil business units. Whilst early days they are all now settled and making a real difference in bringing our strategy to life and building business performance.

The major investment programme in our GB supply chain is now well underway and a new PET production line and warehousing facility are now operational in Leeds. By increasing our PET capability and efficiency, particularly for the north of England and Scotland, we can produce a more flexible range of PET packs at a lower cost. Work is also underway at our other sites, including new can lines at Rugby and a new PET line at our London factory. We remain on-track to invest between £70m and £80m of capital expenditure in support of this programme this year, with a commitment to deliver at least a 15% cash return on the capital invested when fully operational.

"Build trust and respect in our communities"

We have continued to make progress on our broad sustainability agenda. Our GB, Irish and French businesses all have charity partnerships as part of our contribution to the communities in which we operate. In GB we have partnered with "The Wildlife Trusts" and "Sported" charities to support our ambition to encourage people to lead healthier and more active lifestyles as well as protecting the environment.

As you will be aware the UK Government announced a proposed soft drinks tax in the March 2016 Budget with proposed implementation in 2018. While we are disappointed with the decision and believe a holistic approach is necessary to tackle obesity, Britvic is well placed to respond as we have been building our portfolio of 'Better for You' soft drinks for some time. As currently proposed 66% of our volumes fall below the proposed tax bands. Since 2012 our actions, such as the removal of full sugar Fruit Shoot and Robinsons and the reformulation of brands such as J20 and Drench, have led to an annualised 19 billion calorie reduction across our portfolio. We will continue to play this leadership role and our focus will be on creating a portfolio of brands which appeals to evolving consumer preferences.

Overall I am pleased with the progress we have made so far this year and we are on-track to deliver both our profit guidance for the year and to continue to build sustainable long-term shareholder value.

Chief Financial Officer's Review

The following is based on Britvic's results for the 28 weeks ended 10 April 2016. All numbers quoted are on a constant currency basis and are before exceptional and other items, unless otherwise stated.

Overview

In the period the group sold 1.17 billion litres of soft drinks, an increase of 9.8% on the previous year and group revenue was £678.0m, an increase of 5.1%. Excluding the first time contribution of Brazil, volumes increased 0.2% and revenue declined by 1.8% to £633.9m.

Group adjusted EBITA has grown by 7.1% to £69.0m, with EBITA margin increasing by 20bps to 10.2%. The contribution from Brazil at the half year includes their key summer trading period. Organic EBITA excluding the impact of Brazil grew 3.1%. Delivering revenue growth in our core markets remained difficult and our profit growth in the first half of the year was underpinned by a strong focus on cost control. Adjusted EPS has grown by 6.1% to 17.3p and with an improvement in our adjusted net debt to EBITDA by 0.2x has allowed the board to declare an interim dividend of 7.0p, 4.5% growth on last year.

A strong second quarter performance saw revenue up over 5% leading to a half year revenue growth of 2.4%. This performance was driven across the carbonates portfolio, led by Pepsi, which continued to deliver another period of strong take-home market share gains. There was a significant out-performance in "on the go" packs, which are margin accretive, and drove brand contribution margin ahead of last year by 70bps. The focus on the no-sugar Pepsi Max variant continued to be very successful with the new cherry variant a key factor in the growth.

The GB total stills take-home market, as measured by Nielsen, declined in value by 2.7% (excluding water) and the total squash category declined 3.9%. Robinsons, the market leading squash brand, underperformed the category as we removed the added sugar variants part way through last year and have experienced some volume loss as a result. In the second half of the year we will start to lap the removal of the added-sugar range. Robinsons has also been adversely affected by an increase in price promotion activity in response to aggressive pricing from own-label competitors who in turn are responding to discounter pricing.

Whilst Fruit Shoot saw strong market share gains its overall performance declined, reflecting the weak kids category. Our recent innovations, including Teisseire and J20 Spritz are generating category growth and the second half of the year will see the introduction of new packs for Robinsons and the re-launch of Drench, an adult juice drink, with a new brand identity and lower sugar formulation. As consumer trends move to "Better for You" products, our broad stills portfolio combined with our innovation programme is well positioned to capitalise on the future growth opportunities.

The take-home soft drinks market, as measured by IRI, was down in both volume and value by 1.4% and 0.4% respectively. Within the categories that we operate of Syrups, Kids and Juice, all of our key own brands of Teisseire, Fruit Shoot and Pressade have again taken market volume and value share. The ARP decline is in part driven by the growing strength of the Fruit Shoot brand, firmly established as the leading brand in the category, where the ARP is lower than the French average, but accretive to the group. The volume and revenue decline is largely driven by a reduction in private label sales which have been affected by weak consumer sentiment and the power of supermarket buying groups.

Note: Volumes and ARP include own-brand soft drinks sales and do not include factored product sales.

Ireland has now delivered revenue growth in four of the last five quarters. The half year revenue was up 4.1% with second quarter growth of 7.3%. Our own brand portfolio grew its value share, led by the stills brands which enjoyed growth, especially Ballygowan and MiWadi. We also saw a strong performance by the Counterpoint business in the licensed wholesale channel. The success of Counterpoint and Ballygowan water which are structurally at lower margins are the principal drivers of the decline in the brand contribution margin.

Note: Concentrate sales are included in both revenue and ARP but do not have any associated volume. For US multipack both volume and revenue are accounted for on receipt of product by the customer.

* Whilst reported revenue, ARP and brand contribution declined, this was due to a change in the route to market in the Netherlands resulting in costs that were previously reported against overheads now being reported against revenue and marginal costs. Comparable ARP declined 2.6%, revenue grew 3.5% and brand contribution declined 15.2%.

In the Netherlands, whilst we gained market share, the trading environment was increasingly challenging. In the USA our concentrate revenue for single serve grew year on year and also included a small amount of volume and revenue for multipack sales late in the quarter as we launched this pack into the grocery channel.

Brazil has no comparatives as it is the first time of inclusion in the Britvic group, however non audited pro-forma comparatives are provided in the commentary to aid understanding.

Our first half performance in Brazil has been encouraging with market share gains in a challenging market, leading to volume and revenue growth of 3.8% and 8.6% respectively. We have also increased prices in response to high levels of input cost inflation which has resulted in ARP growth of 4.6%. The lag effect of increased costs and subsequent price increases has resulted in 170bps contraction to brand contribution margin. We have recruited additional resource into the business and invested in the supply chain as part of our plans to deliver on our acquisition commitment of at least doubling its EBITDA by 2020.

Fixed costs reduced by 1.2% to £188.0m despite inclusion of Brazil overheads for the first time. Underlying fixed costs were down nearly 3% and there was a one off benefit from some costs previously categorised as overheads now being reported against revenue and marginal costs, following the route to market change in the Netherlands last year. During the first half of the year, the residual benefit of the 2013 strategic cost initiatives were achieved amounting to approximately £2m. We continued to demonstrate our commitment to the future growth potential of the international business and innovation by maintaining the targeted investment we have made in previous years.

A&P spend decreased in the first half of the year by £3.8m to £31.6m. A&P spend as a percentage of revenue decreased by 80bps to 4.7% of revenue. This was in part due to the inclusion of Brazil which currently spends much lower levels of A&P than the group average. Organic A&P spend was down on last year largely as a result of the timing of activity last year when A&P was up nearly 15% on 2014. We continue to focus on the efficiency of our marketing spend and have been actively seeking to reduce our non-working spend. We have realised some benefits of this in the first half and would expect this to continue in the second half of the year.

Exceptional and other items

In the period, we accounted for a net charge of £0.6m of pre-tax (£1.1m post tax) exceptional and other costs. These include:

• Integration of Brazil costs of £2.6m

• Remaining restructuring costs related to initiatives announced in May 2013 of £0.5m

• Restructuring costs relating to the business capability programme of £0.9m

• £1.5m associated with the unwinding of the discount on the deferred consideration for the acquisition of Ebba. The unwinding of this discount is included in exceptional costs until payment of this 2nd tranche in September 2017

• Fair value gains of £5.4m, mostly relating to a gain on the FX forward hedging the deferred consideration for Ebba (along with equity forwards)

• Debt repayment charges of £0.5m that were incurred on repayment of acquired Ebba debt

The cash associated with exceptional items in the period was an outflow of £10.4m, including items accrued for last year as previously disclosed.

Interest

The net finance charge before exceptional and other items for the 28 week period for the group was £10.9m compared with £12.2m in the same period in the prior year, reflecting the lower debt profile of the group and the refinancing of the group bank facilities last year.

Taxation

The tax charge before exceptional and other items was £12.8m which equates to an effective tax rate of 23.5% (28 weeks ended 12 April 2015: 23.5%).

Earnings per share

Adjusted basic EPS for the period, excluding exceptional and other items and acquisition related amortisation, was 17.3p, up 6.1% on the same period last year (16.3p). Basic EPS (after exceptional and other items charges post-tax) for the period was 15.5p compared with 15.3p for the same period last year (+1.3%).

Dividends

The board is recommending an interim dividend of 7.0p per share, an increase of 4.5% on the dividend declared last year, with a total value of £18.4m. The interim dividend will be paid on 8 July 2016 to shareholders on record as at 27 May 2016. The ex-dividend date is 26 May 2016.

Cash flow and net debt

Free cash flow was a £46.9m outflow, compared to a £31.5m outflow in the previous year. Working capital was an outflow of £49.5m (2015: £42.4m outflow). Capital expenditure was £47.3m (2015: £22.0m), an increase of £25.3m due to the increased investment in the GB supply chain infrastructure. Other spend decreased by £11.9m as a result of lower share purchases to satisfy share incentive schemes and interest payments. Overall, adjusted net debt reduced by £8.8m and took leverage to 2.0x EBITDA from 2.2x last interim. The adjusted net debt (taking into account the foreign exchange movements on the derivatives hedging our US Private Placement debt) at 10 April 2016 was £438.9m, compared to £447.7m at the last interim.

Treasury management

The financial risks faced by the group are identified and managed by a central treasury department, whose activities are carried out in accordance with board approved policies and subject to regular Audit and Treasury Committee reviews. The department does not operate as a profit centre and no transaction is entered into for trading or speculative purposes. Key financial risks managed by the treasury department include exposures to movements in interest rates and foreign exchange rates whilst managing the group's debt and liquidity, currency risk, interest rate risk and cash management. The group uses financial instruments to hedge against interest rate and foreign currency exposures.

At 10 April 2016 the group has £902m of committed debt facilities consisting of a £400m bank facility which matures in 2020, with the potential to extend to 2021, and a series of private placement notes with maturities between 2016 and 2026 providing the business with a secure funding platform. At 10 April 2016, the group's unadjusted net debt of £549.4m (excluding derivative hedges) consisted of £1.9m drawn under the group's committed bank facilities, £612.6m of private placement notes, £3.8m of accrued interest and £0.3m of finance leases, offset by net cash and cash equivalents of £66.8m and unamortised loan issue costs of £2.4m. After taking into account the element of the fair value of interest rate currency swaps hedging the balance sheet value of the private placement notes, the group's adjusted net debt was £438.9m which compares to £447.7m at 12 April 2015.

Pensions

At 10 April 2016, the IAS 19 pension surplus in respect of the group defined benefit pension schemes was £2.9m (27 September 2015: net surplus of £17.3m). The net surplus has decreased primarily due to the changes in the financial assumptions, partially offset by additional employer contributions made to the GB plan of £20.0m.

The defined benefit section of the GB pension plan is closed to future accrual. The Northern Ireland Plan is only open to future accrual for members who joined before 28 February 2006, and new employees are eligible to join the defined contribution plan. All new employees in Ireland join the defined contribution plan. The 1 January 2015 actuarial valuation of the Britvic Ireland Defined Benefit Plan has been completed and shows there was no past service deficit. The GB Pension Plan actuarial valuation as at 31 March 2016 is underway.

Risk management process

The Board has overall accountability for ensuring that risk is effectively managed across the group. Each business unit executive team and key functions are responsible for identifying, assessing and managing risks in their respective area on an on-going basis, and are supported in this by the Director of Risk & Audit and the risk team. Each risk is assigned an owner at management level who ensures that appropriate actions are taken to manage the risk. The major risks are reported to and reviewed by the executive team and the board on an on-going basis and a formal review is undertaken at least twice a year. The principal risks that could potentially have a significant impact on our business in the future are set out on pages 28 and 29 of the 2015 annual report.

The principal risks include the increasing risk related to changes in consumer preferences to sugar, natural and artificial sweeteners and the risk of introduction of legislation that impacts sugar sweetened drinks. In the March 2016 budget the UK government announced a proposal to introduce a tax on soft drinks based on their sugar content from 2018. Britvic already offers a broad range of products and has taken significant steps in recent years to reduce added sugar and reformulate drinks using Stevia for example and remains committed to a 20% calorie reduction by 2020. Britvic will engage fully in the Government consultation process taking place in the summer with regard to the proposed tax.

BRITVIC PLC

INTERIM FINANCIAL STATEMENTS

For the 28 weeKS ENDED 10 april 2016

Company number: 5604923

RESPONSIBILITY AND CAUTIONARY STATEMENTS

RESPONSIBILITY STATEMENTS

The directors confirm that to the best of their knowledge, this unaudited condensed set of consolidated interim financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.

CAUTIONARY STATEMENT

This report is addressed to the shareholders of Britvic plc and has been prepared solely to provide information to them.

This report is intended to inform the shareholders of the group's performance during the 28 weeks to 10 April 2016. This report contains forward-looking statements based on knowledge and information available to the directors at the date the report was prepared. These statements should be treated with caution due to the inherent uncertainties underlying any such forward-looking information and any statements about the future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

DIRECTORS

The directors of Britvic plc are:

Gerald Corbett

Simon Litherland

Mathew Dunn

Joanne Averiss

Sue Clark

John Daly

Ben Gordon

Ian McHoul

Euan Sutherland

By order of the board

Simon Litherland

Chief Executive Officer

Mathew Dunn

Chief Financial Officer

Date: 18 May 2016

BRITVIC PLC

INDEPENDENT REVIEW REPORT TO BRITVIC PLC

Introduction

We have been engaged by Britvic plc (the 'company') to review the condensed set of financial statements in the interim financial report for the 28 weeks ended 10 April 2016 which comprises the consolidated income statement, consolidated statement of comprehensive income/(expense), consolidated balance sheet, consolidated statement of cash flows, consolidated statement of changes in equity and the related notes 1 to 18. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The interim financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the interim financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the 28 weeks ended 10 April 2016 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Ernst & Young LLP

Birmingham

Date: 18 May 2016

consolidated income statement

For the 28 weeks ended 10 April 2016

* See note 7.

** Adjusted basic and diluted earnings per share measures have been adjusted by adding back exceptional and other items (see note 7) and amortisation of acquisition related intangible assets. This reconciliation is shown in note 9.

All activities relate to continuing operations.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(EXPENSE)

For the 28 weeks ended 10 April 2016

CONSOLIDATED BALANCE SHEET

As at 10 April 2016

CONSOLIDATED STATEMENT OF CASH FLOWS

For the 28 weeks ended 10 April 2016

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the 28 weeks ended 10 April 2016

notes to the financial information

For the 28 weeks ended 10 April 2016

1. General Information

Britvic plc (the 'company', the 'group') is a public limited company, incorporated and domiciled in the United Kingdom. The address of the registered office is: Britvic plc, Breakspear Park, Breakspear Way, Hemel Hempstead, Hertfordshire, HP2 4TZ.

The company is listed on the London Stock Exchange.

These interim financial statements do not constitute statutory accounts as defined by Section 434 of the Companies Act 2006. They have been reviewed but not audited by the group's auditor. The statutory accounts for Britvic plc for the 52 weeks ended 27 September 2015, which were prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union, have been delivered to the Registrar of Companies. The auditor's opinion on those accounts was unqualified and did not contain a statement made under section 498 (2) or (3) of the Companies Act 2006.

The interim financial statements were authorised for issue by the board of directors on 18 May 2016.

2. Basis of preparation

These interim financial statements comprise the consolidated balance sheet as at 10 April 2016 and related consolidated income statement, consolidated statement of cash flows, consolidated statement of comprehensive income/(expense), consolidated statement of changes in equity and the related notes 1 to 18 for the 28 weeks then ended of Britvic plc ('financial information'). This financial information has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with the International Accounting Standard (IAS) 34 'Interim Financial Reporting' as adopted by the European Union.

3. Going concern

The directors are confident that it is appropriate for the going concern basis to be adopted in preparing the interim report and financial statements. As at 10 April 2016, the consolidated balance sheet reflects a net assets position of £220.0m. The liquidity of the group remains strong supported by £612.6m of private placement notes with maturity dates between 2016 and 2026. In addition, the group has a £400.0m bank facility with a maturity date of November 2020. Details are provided in the group's 2015 annual report.

Group retained reserves are low due to the capital restructuring undertaken at the time of flotation. This does not impact on Britvic plc's ability to meet payments as they fall due or to make dividend payments.

4. Accounting policies

This financial information has been prepared using the accounting policies as set out in pages 84 - 91 of the group's 2015 annual report.

During the period, the group adopted a number of interpretations and amendments to standards which had an immaterial impact on the consolidated financial statements of the group.

5. Seasonality of operations

Due to the seasonal nature of the business, higher operating profits are usually expected in the second half of the year than in the first 28 weeks.

6. Segmental reporting

For management purposes, the group is organised into business units. During the current year following the purchase of a subsidiary in Brazil (see note 10), management intends to report Brazil as a separate reportable segment and now has six reportable segments as follows:

· GB Stills - United Kingdom excluding Northern Ireland

· GB Carbs - United Kingdom excluding Northern Ireland

· Ireland - including Northern Ireland

· France

· Brazil

· International

These business units sell soft drinks into their respective markets.

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on brand contribution. This is defined as revenue less material costs and all other marginal costs that management considers to be directly attributable to the sale of a given product. Such costs include brand specific advertising and promotion costs, raw materials and marginal production and distribution costs. However, group financing (including finance costs) and income taxes are managed on a group basis and are not allocated to reportable segments.

Transfer prices between reportable segments are on an arm's length basis in a manner similar to transactions with third parties.

* Included within 'Administration expenses' in the consolidated income statement. 'Overheads and other costs' relate to central expenses including salaries, IT maintenance, depreciation and amortisation.

** Included within 'Selling and distribution costs' in the consolidated income statement.

There has not been a material change to segmental assets and liabilities with the exception of the acquisition of Brazil (see note 10).

7. Exceptional and other items

Exceptional and other items are those items of financial performance that management believe should be separately disclosed by virtue of the nature and infrequency of the events giving rise to them to allow shareholders to understand better the elements of financial performance in the period so as to facilitate comparison with prior periods and to assess trends in financial performance more readily.

a) Costs relating to the acquisition and integration of Empresa Brasileira de Bebidas e Alimentos SA (Ebba). Primarily these costs relate to employee costs, travel costs and advisors fees (see note 10).

b) Strategic restructuring - cost initiatives relate to the continuation of cost initiatives announced in May 2013, following the closure of two factories in Britvic GB and subsequent reorganisation.

c) Strategic restructuring - business capability programme relates to a restructuring of supply chain to enhance commercial capabilities in Britvic GB.

d) Fair value movements relate to the fair value movement of derivative financial instruments where either hedge accounting cannot be applied to future transactions or where there is ineffectiveness in the hedge relationship.

e) Included in the consideration for Ebba is an amount due in September 2017 (see note 10). This amount has been included on acquisition discounted to net present value. The unwind of this discount until September 2017 is shown as exceptional costs.

f) Debt repayment charges were incurred on the repayment of acquired debt in Ebba (see note 10).

Details of the tax implications of exceptional items are given in note 8.

8. Taxation

The tax charge not including tax on exceptional and other items is £12.8m (28 weeks ended 12 April 2015: £12.0m) which equates to an effective tax rate 23.5% (28 weeks ended 12 April 2015: 23.5%).

Included in the total tax charge for the 28 weeks ended 10 April 2016 is a tax charge on exceptional and other items of £0.5m (28 weeks ended 12 April 2015: £0.2m credit).

9. Earnings per share

Basic earnings per share amounts are calculated by dividing the net profit for the period attributable to the equity shareholders of the parent by the weighted average number of ordinary shares in issue during the period.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to the equity shareholders of the parent by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that are potentially issuable in connection with employee share-based payment plans.

The following table reflects the income and share data used in the basic and diluted earnings per share computations: