Tuesday, May 12, 2020

Financial trends and risk management of Britvic Plc 02082 Free Essay Example, 2500 words

(Source: Financial Times, 2015) The share price of Britvic Plc is 722.50. It was extremely high in 2014 and was recorded at 765. It was observed that the company is reporting a continuous increase in its share price since 2010 except for the year 2012. The rising trend in its share price shows that it will rise in the near future (Financial Times, 2015). (Source: Britvic, 2014) Britvic Plc has reported a turnover of  £1344 million in the year 2014 and has continuously increased since 2012. The earnings per share were 24.7p in the year 2012 which has also risen to 41p in 2014. The operating profits were  £106 million in 2012 and have grown up to  £146 million in 2014. The net profit has also increased from  £57 million in 2012 to  £90 million in 2014. All the figures have shown a continuous increase thereby reflecting the food financial performance of Britvic Plc (Britvic, 2014). Corporate and Financial Actions (Source: Financial Times, 2015) Year after year, the revenues of Britvic Plc remained even at 1.32 billion, despite the fact that the net income of the company grew from 61.90 million to 89.70 million. We will write a custom essay sample on Financial trends and risk management of Britvic Plc 02082 or any topic specifically for you Only $17.96 $11.86/pageorder now The net income of Britvic Plc was almost same since 2011 but has suddenly increased in 2014 which is a good sign for the company (Financial Times, 2015). (Source: Financial Times, 2015) Both the earnings per share and the dividends per share were increased by 43.27% and 13.59% respectively in 2014. The positive movement in the dividend payments is remarkable since few companies only in the non-alcoholic/beverages industry gives dividend (Financial Times, 2015). (Source: Financial Times, 2015) In the year 2014, the company increased the cash reserves by 51.80 million or 56.61%. The cash flow was very low in 2012 but has increased to a great extent i. e. approx 52 million in the year 2014. The cash reserves have risen from 105 million to 150 million in 2014. Britvic Plc earned 146.60 million from their operations in support of a cash flow margin (Financial Times, 2015). (Source: Britvic, 2014) In spite of the volume growth and strong value of its brand, Coca-Cola which is the competitor of Britvic was not able to beat the company off the peak spot, and the Britvic maintain to remain the top supplier, with sales of over  £1.3 billion compared to the  £1.1 billion for Coca-Cola Company (Britvic, 2014). The company will soon launch the multi packs of Fruit Shoot in the United States, most probably in the second third quarter of 2015. Britvic also creates and sells the brands of PepsiCo such as 7UP and Pepsi in the United Kingdom.

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