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Factors Setting the Tone for Britvic's (BTVCY) FY19 Earnings

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Britvic plc (BTVCY - Free Report) is scheduled to release preliminary results for fiscal 2019 on Nov 27.

Notably, this soft drinks beverage company, which reports on a half-yearly basis, reported impressive results in the first half of fiscal 2019. It recorded adjusted earnings growth of 5.2% and 4.9% rise in revenues in the first half. Also, organic revenues inched up 1.9% from the year-ago quarter’s level.

Britvic PLC Sponsored ADR Price and EPS Surprise

 

Britvic PLC Sponsored ADR Price and EPS Surprise

Britvic PLC Sponsored ADR price-eps-surprise | Britvic PLC Sponsored ADR Quote

 

Key Factors

Britvic has been benefiting from its robust brand portfolio and transformational business capability initiative, which target the building of a sustainable business model. This initiative has been delivering cost and commercial gains as well as enhancing supply-chain capabilities. Moreover, the company’s efforts to improve participation in the soft drink category and sales channels are impressive. It is also gaining from its product innovations and expansion initiatives.

In addition, this Zacks Rank #2 (Buy) company is benefiting from its partnership with PepsiCo in the U.K. and Ireland. This is likely to boost sales of brands like Pepsi, 7UP, Lipton Ice Tea and Mountain Dew. Contributions from the Ebba buyout are also driving the company’s performance. Solid organic performance driven by strength across all geographies and robust revenue management initiatives are likely to have bolstered the company’s top line in fiscal 2019.

However, concerns related to business failures in customer base, Brexit, higher expenses, unfavorable geographic and product sales mix might exert pressure on the company’s performance. Moreover, Britvic witnessed headwinds related to the introduction of the Soft Drinks Industry Levy (SDIL) and disruption from the temporary shortage of carbon dioxide in the U.K. and Ireland. Persistence of these headwinds is expected to have negatively impacted the company’s performance in fiscal 2019.

Furthermore, higher cost of investments for product innovation, supply chain and marketing are other deterrents. Intense competition in the industry along with any shift in consumers’ preferences is likely to affect volumes, and in turn, dent sales and profits.

Other Beverage Stocks to Watch

The Boston Beer Company, Inc (SAM - Free Report) has an expected long-term earnings growth rate of 10% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Barfresh Food Group, Inc (BRFH - Free Report) has delivered a positive earnings surprise of 100% in the last reported quarter. It currently has a Zacks Rank #2.

Luckin Coffee Inc (LK - Free Report) , also a Zacks Rank #2 stock, delivered a positive earnings surprise of 13.5% in the last reported quarter.

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