Britvic plc Interim Results - 17 May 2022

For the six months ended 31 March 2022

Another strong performance, commencing a £75m share buyback programme

Group Financial Headlines:

·    Revenue increased 18.5%¹ to £719.3m (reported +16.6%)

·    Adjusted EBIT increased 20.7%¹ to £73.5m (reported +22.3%), statutory EBIT increased 35.8%

·    Adjusted EBIT margin increased 20bps¹ to 10.2% (reported +50bps)

·    Profit after tax increased 48.7% to £45.8m

·    Adjusted earnings per share of 19.4p, up 27.8%

·    Interim dividend of 7.8p, up 20.0%

·    Adjusted net debt/EBITDA of 2.2x, a reduction of 0.6x on H1 last year

Highlights:

·    Double-digit revenue growth, with volume and pricing growth across all business units

o Continued growth in At-Home channels, with Out-of-Home channels recovering back towards pre-COVID levels

o Immediate Consumption volumes ahead of pre-COVID

·    Pricing activity, promotional strategy, management of our mix and disciplined cost control has helped to mitigate the impact of inflation

·    Good progress against our strategic objectives including:

o Additional production capacity in GB and Brazil now operational

o Strong momentum across our core brands

o Exciting innovation launches with core brand extensions, new flavours and new pack formats

o Accessing new growth spaces - Plenish relaunched and Aqua Libra flavour tap launched

·    Continuing to build investment in our people, brands and infrastructure

·    Commencing an initial share buyback programme of £75m in the next 12 months, reflecting the strength of our balance sheet and confidence in our growth strategy

^1. Adjusted for constant currency, and the Ireland agency brands which ceased trading in March 2021.

^2. Please refer to note 21 of the interim financial statements for details of SaaS arrangements restatement.

^3. Adjusting EBIT items of £6.4m are detailed on page 33.

Simon Litherland, Chief Executive Officer commented:

"I am delighted with our first half performance.  We have accelerated revenue growth across our markets and made good progress against our strategic priorities. We have successfully executed pricing and cost actions to mitigate significant levels of inflation, while continuing to rebuild investment to support our near and longer-term growth ambitions. We continue to generate strong cash flow and have increased the interim dividend by 20%. I am also pleased that today the Board have announced our intention to commence an initial share buyback programme of £75m in the next 12 months, reflecting the strength of our balance sheet and confidence in our growth strategy.

The current geo-political uncertainty is likely to result in continued cost inflation and pressure on consumer spending at least into 2023.  I remain confident however that we will continue to successfully navigate the headwinds, thanks to our portfolio of leading brands, strong customer relationships, smart revenue management capability and the resilience of our supply chain and our people. This will enable us to maintain our positive momentum, progress our key performance metrics and strategic priorities, and continue to create value for all our stakeholders." 

This announcement contains inside information related to a share buyback programme.

The person responsible for making this announcement is Clare Thomas, Company Secretary.

For further information please contact:

There will be a webcast of the presentation given today at 09:00am by Simon Litherland (Chief Executive Officer) and Joanne Wilson (Chief Financial Officer). The webcast will be available at www.britvic.com/investors with a transcript available in due course. To ask a question on the webcast, please dial +0800 279 6877 or +44 (0) 330 165 4012 and enter the confirmation code 7088891.

Note to editors

About Britvic

Britvic is an international soft drinks business rich in history and heritage. Founded in England in the 1930s, it has grown into a global organisation with 37 much-loved brands sold in over 100 countries.

The company combines its own leading brand portfolio including Fruit Shoot, Robinsons, Tango, J2O, London Essence, Teisseire and MiWadi with PepsiCo brands such as Pepsi, 7UP and Lipton Ice Tea which Britvic produces and sells in Great Britain and Ireland under exclusive PepsiCo agreements.

Britvic is the largest supplier of branded still soft drinks in Great Britain and the number two supplier of branded carbonated soft drinks in Great Britain. Britvic is an industry leader in the island of Ireland with brands such as MiWadi and Ballygowan, in France with brands such as Teisseire, Pressade and Moulin de Valdonne and in its growth market, Brazil, with Maguary, Bela Ischia and Dafruta. Britvic is growing its reach into other territories through franchising, export and licensing.

Britvic is a purpose driven organisation with a clear vision and a clear set of values. Our purpose, vision and values sit at the heart of our company, driving us forward together to create a better tomorrow. We want to contribute positively to the people and world around us. This means ensuring that our sustainable business practices, which we call Healthier People, Healthier Planet, are embedded in every element of our business strategy.

Our purpose: Enjoying life's everyday moments

Our vision: To be the most dynamic soft drinks company, creating a better tomorrow

Our values: We care, We're courageous, Own it, Stronger together, Act with Pace

Britvic is listed on the London Stock Exchange under the code BVIC and is a constituent of the FTSE 250 index.

Find out more at Britvic.com

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 including the COVID-19 pandemic, 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 26 March 2022. ROI take-home market data referred to is supplied by Nielsen and runs to 27 March 2022. French market data is supplied by Nielsen and runs to 27 March 2022. Brazil is supplied by Nielsen and runs to 31 March 2022.

Next scheduled announcement

Britvic will publish its Q3 trading statement on 21 July 2022.

Chief Executive Officer's Review

Today we report our results for the six months to 31 March 2022, during which time we continue to build on our strong business momentum and make significant progress against our strategic priorities. I am proud of the Britvic team, who are at the heart of our success, and on behalf of the Board and Executive, I would like to extend my thanks to them and their families for their continued commitment.

Performance against all our key financial metrics in the first half of the year was strong, reflecting both accelerated growth across our markets and brands and the high level of Covid restrictions that were in place in the first half of 2021. While the Omicron variant led to a temporary slow-down in the recovery of the Out-of-Home channel part-way through the half, trading in the Out-of-Home channel has since recovered back towards 2019 levels. Since the pandemic, the geo-political environment has increasingly impacted the global economy, leading to cost pressures at levels not seen for many years. As a business we have risen to the challenge, implementing both revenue management and cost efficiency initiatives across all our markets.

This has resulted in first half growth in underlying revenue of 18.5%, adjusted EBIT of 20.7%, and underlying margin improvement of 20bps. Our revenue growth has accelerated, in Q1, revenue was +16.5% and in Q2 +20.8%. Our momentum is demonstrated by underlying group revenue increasing 13.6% versus the comparable period of H1 2020 (before the pandemic began to significantly impact performance). Our focus and discipline on cash enabled us to generate free cash flow despite the peak working capital outflow we typically see in our first half, and our half-year leverage ratio is now at its lowest since 2016, with £130m repayment of debt since 2020.  The strength of our balance sheet and cash generative business supports our growth aspirations as well as presenting an opportunity for increased returns to shareholders through dividends and the share buyback programme announced today.

We have also made good progress on our Healthier People, Healthier Planet programme. Our employee engagement score remains top quartile, our calories per serve remain well below our 30 calories target, we saw a further reduction in our carbon scope 1 and 2 emissions, and we have achieved 36% rPET across the portfolio in GB and Ireland.

A growth strategy

Before the pandemic, we took the opportunity to evolve our strategy, to ensure we are best positioned to access growth opportunities in the changing consumer and retail landscape across our markets. With a portfolio of market-leading brands, multi-channel routes to market, collaborative customer relationships and a well-invested supply chain, we set out our strategic framework as follows:

Our future focus remains on four key strategic priorities:

·    Build local favourites and global premium brands

·    Flavour billions of water occasions

·    Healthier People, Healthier Planet

·    Access new growth spaces

Each of our markets has a defined role to play:

·    GB - to lead market growth

·    Brazil - to accelerate growth and expand our presence

·    Other International - to globalise premium brands and improve profitability in Western Europe

Underpinning this strategy are three critical enablers:

·    Generate fuel for growth through efficiency

·    Transform organisational capability and culture

·    Selective M&A to accelerate growth

Market review

GB

Our performance in GB has been strong, with revenue growth in the second quarter accelerating at +21.8% compared to last year. Growth was led by the Out-of-Home channel, with revenue significantly ahead of 2021 and the comparable period (pre-COVID) to the end of March 2020, reflecting an increase in socialising and mobility as people spent less time at home. Our performance in the At-Home channel was also robust, with revenue continuing to grow compared to last year. According to Nielsen, the At-Home channel retail sales value is now £9.8bn, increasing £1.1bn over the previous two years. Encouragingly, our At-Home market share remains ahead of pre-COVID levels.

Across the market, our brands have shown momentum, with revenue increasing not only versus last year but also 13.6% ahead of 2020. All of Pepsi, Tango, 7UP, R Whites, J20, Lipton and Fruit Shoot delivered double-digit revenue growth.  Robinsons volumes were softer, especially in Q2, reflecting strong demand last year and a reduction in promotional activity this year to grow margin.

During the first half, we implemented significant pricing activity, including changes to promotional price points and careful management of our mix, which has helped to mitigate the impact of inflation.  Price increases were implemented early in Q2 and hence we have seen a lag effect on inflation mitigation in the GB brand contribution rate in the first half.

We have continued to invest in our brands, with highly relevant and effective marketing activation, alongside innovation to broaden our appeal. Pepsi MAX was highly visible to consumers through its continued sponsorship of the UEFA Champions League. J20 launched an on-pack promotion for Christmas, while Fruit Shoot returned with its 'Merrylicious' festive flavour. Both brands are benefiting from an increase in consumer socialising. We launched a new Tango flavour, Berry Peachy, adding another sugar-free option to the range, as did Aqua Libra with Blood Orange & Mango.

Alongside the growth momentum of our core brands, we have also continued to invest in accessing future growth spaces. Following our acquisition of Plenish last year, the brand has been able to leverage our strong customer relationships and brand marketing expertise. Plenish was relaunched in late Q2 with new packaging, highlighting its premium, natural credentials, and secured significant additional distribution for the plant-based milks and shots ranges. The Aqua Libra Company, which we launched last year following the acquisition of The Boiling Tap Company in 2020, has used our flavour concentrates expertise to develop a unique tap proposition that offers flavoured water alongside still, sparkling and hot, and has been building a pipeline of opportunities in both the workplace and retail channels. Our premium tonic, London Essence, has gained share in the retail channel and increased distribution in pubs, bars and restaurants of both packaged product and our dispense offering, Freshly Infused.

We also continue to enhance our business capability. Our new can line is now operational at our Rugby factory, adding approximately 150m litres of capacity and demonstrating our confidence in future growth. Our commercial transformation programme went live as planned in Q2, implementing the Kantar commercial system to optimise the efficiency and effectiveness of our promotions and customer investment. It also simplifies our ways of working and enhances collaboration between teams to improve our commercial plans. We also continue to enhance our digital capability with the launch of an in-house digital studio, which will improve the quality and speed our brands interact with consumers by creating a range of highly relevant real-time content, including videos and animations.

Brazil

Brazil's revenue growth has continued at double-digit levels, with growth accelerating in the second quarter. Our focus has remained on building scale to deliver sustainable growth. Since the acquisition of EBBA in 2015, we have gained significant market share in the core categories of concentrates and juice drinks and successfully expanded to create strong footholds in new market segments.

Launching Fruit Shoot in Brazil and growing the range and pack formats for the local market has enabled us to achieve an 18% volume share of the kids' drinks market. We now have a credible, scale coconut water brand in Puro Coco, with a 17% volume share of the category, while our grape offering, Seleção, has an 11% volume market share. As well as great innovation in both core and new categories, a key element of our success has been the quality of our in-store execution, with improved shelf presence and excellent feature & display, attracting consumers to buy our brands.

Our business in Brazil has experienced another year of significant cost inflation, in common with other FMCG companies. While our focus is to build scale market share across the categories in which we operate, we have implemented multiple price increases as part of our strategy to partially mitigate the adverse inflationary impact on trading contribution.

We believe that the Brazil business offers a long-term opportunity to grow. We have recently leased a new manufacturing facility in Rio Grande do Sul, in Southern Brazil. This will enable us to continue our vertical integration by increasing grape processing closer to its source and thereby reduce logistics costs and road miles. Recently we also installed a new biomass boiler, our third, as part of a decarbonisation strategy.

Over the last few years, we have been building a premium, higher-margin portfolio. As well as introducing Britvic brands such as Mathieu Teisseire, London Essence, and Britvic mixers, we have launched local brands, including Nuts, a plant-based milk, and Natural Tea. Both Britvic mixers and London Essence have been building awareness with the trade through event activation, social media influencers and trade shows. Recently we moved production to the local market for London Essence and introduced two unique flavours of Britvic mixers to appeal to local consumers.

Other International

Other International combines our full-service operations in Ireland and France with markets where we have a commercial presence, such as Benelux and the travel sector, and our global premium brands, London Essence and Mathieu Teisseire.

Our performance in Ireland has been strong, with underlying revenue increasing 23% and both the Out-of-Home and At-Home channels recording double-digit growth. Encouragingly all our core brands were in strong growth.  We implemented actions early in Q1 to mitigate inflationary pressures, including price increases, mix management and promotional optimisation.  

We have continued to leverage the strength of our brand portfolio with innovations such as Ballygowan 'Hint of Fruit' flavoured water and entered the energy category with the launch of Rockstar last year and more recently, Club 'Loaded'. Through a combination of mix management and simplifying the operating model with the closure of Counterpoint last year, the Irish business has delivered a significant improvement in operating margin, in line with our strategy.

In France, all brands were in solid growth, with revenue +11.8% compared to last year. Our brands also gained market share within the categories we participate. The trading environment in France continues to be particularly challenging, and our pricing activity has only partially mitigated the inflationary cost pressure we face.

Our strategy also seeks to grow our global premium portfolio such as Mathieu Teisseire. The heartland of the Mathieu Teisseire opportunity is in the Out-of-Home channel, and the lifting of restrictions has resulted in the brand regaining momentum. To support its expansion, we have secured a co-packing agreement in France to complement the current production at our factory in Crolles. We have also secured new distribution agreements in key markets, such as working with partners with the scale and presence to enable us to realise the brand's full potential. We have also expanded our capability with a new studio in the Middle East and one soon to open in Paris, trade event promotional opportunities and deploying brand ambassadors in our focus markets.

Similarly, London Essence also benefited from lifting restrictions, delivering strong growth globally. We have secured key new distributors in Italy, Belgium and Australia and expanded the range of tonics and sodas to support the premium category position. We have also secured our first multi-market listing for both brands with the Marriott Hotel group.

Outlook

Strong revenue momentum has continued in April, with double-digit revenue growth year-on-year, in line with our expectations. In the second half we have clear priorities including activating highly relevant marketing programmes, expanding our core brands through extension and innovation and developing our presence in new growth spaces.

We are confident that the strength of our portfolio, combined with the agility and resilience of our well-invested business, puts us in a strong position to continue to successfully navigate through the current macro uncertainties and inflationary environment.

While soft drinks are not immune to changes in consumer spending, both the category and Britvic's leading family favourite brands have historically shown themselves to be resilient and low elasticity through a downturn and we are confident we will continue to navigate short-term uncertainties.  The long-term prospects and growth opportunities for Britvic also remain robust, and we are confident in our ability to create sustainable returns for all our stakeholders.

Chief Financial Officer's Review

Overview

We have delivered a strong performance in the first half of the year, building on the momentum we saw as we exited 2021 and with all key financial metrics on a positive trajectory. Underlying Group revenue increased 18.5% year-on-year on a constant currency basis, and we saw a sequential improvement through the year, with second-quarter revenue increasing 20.8% year-on-year as we lapped lockdown restrictions in our markets in the prior year. Revenue was 13.6% ahead of the same period in 2020.

We have successfully executed pricing plans in each of our markets through the first half. There has however been a time lag between inflation hitting our P&L and the implementation of price increases which has impacted Brand Contribution Margin.  In addition to price, we have used other levers to help mitigate inflationary pressure, including mix, promo optimisation, productivity initiatives and disciplined cost management.  Consequently, brand contribution is adverse across the business units while group adjusted EBIT margin is ahead. We will realise the full benefits of the price increases in the second half of the year.

Adjusted EBIT increased 20.7% to £73.5m, resulting in an adjusted EBIT margin of 10.2%, a 20bps improvement year-on-year. The increase in EBIT margin reflects a positive channel mix as Out-of-Home volumes recovered and improved operating leverage.  This was achieved while increasing our investment, most notably in A&P, our digital capabilities, operational capacity, and sustainability-related activities.

Adjusted EPS increased 27.8% year-on-year. The interim dividend equates to 7.8p per share, a year-on-year increase of 20.0%.

Our cash performance continued to be strong with a positive free cash flow in the half, driven by a relentless focus on day-to-day cash management. Since 31 March 2021, we have delivered a reduction in leverage with an adjusted net debt/EBITDA ratio of 2.2x at 31 March 2022, a 0.6x reduction from this time last year.

Our confidence in the continued downward trajectory of our leverage ratio has resulted in the Board's decision to commence an initial share buyback programme.

Below is a summary of the segmental performance and explanatory notes related to items, including taxation, interest, and free cash flow generation.

In GB, we have seen accelerated growth with revenue increasing 19.3% year-on-year (+13.6% versus H1 FY20) and brand contribution up by 13.6%.  Out-of-Home revenue increased by 59.0%, as we lapped prior year trading restrictions and the channel continued its recovery back to 2019 levels, and At-Home continued to grow increasing +4.4% year-on-year.

ARP growth of 7.8% was driven by an improved mix and the benefit of price and promotion actions implemented during the half. Socialising brands, including J20 and Fruit Shoot, and immediate consumption pack formats benefited from the lifting of restrictions and increased mobility. The immediate consumption improvement was seen across our brand portfolio, including Pepsi, 7UP, Tango, Robinsons RTD and Lipton. A&P increased year-on-year by £5.2m as the rebuild of brand investment continued. This resulted in 70bps decline in brand contribution margin with the balance of the 190bps decline due to input cost inflation.  Cost inflation was only partially mitigated in the first half as price increases were implemented in early Q2. 

In Brazil, we saw a continuation of double-digit revenue growth with revenue at constant currency up 15.3% which, after adjusting for PIS/COFINS tax benefits, translates to underlying revenue growth of 18.4%.  This was driven by both volume and ARP growth of 5.9% and 8.9% respectively.

The drivers of growth were RTD juice, Kids range and grape. Concentrates revenue was broadly flat while Puro Coco declined due to a shortage of coconut supply in the period. Brand contribution declined over 19% due to continued input cost inflation, product mix and lower PIS/COFINS tax rebates, the latter accounting for 215bps of the brand contribution decline.  Multiple price increases were implemented during the half which, together with cost actions, helped mitigate some of the inflationary pressures we are experiencing.

Note: Other International consists of France, Ireland and other international markets. Concentrate sales are included in both revenue and ARP but do not have any associated volume. % like-for-like excludes Counterpoint agency brands.

Across Other International, underlying volume grew 14.5%, ARP increased 2.6% and revenue increased 17.4%.  The strong recovery in Ireland continued, with revenue growing 23.0%.  France's revenue grew 11.8%, with all brands in growth and taking share.  The rest of international also saw double-digit growth, led by the recovery of the travel channel, sales in Europe and the Middle East. Inflationary cost pressures impacted brand contribution, resulting in a 240bps margin decline.

Overall, our fixed cost base increased 6.9% on a like-for-like basis which reflects selective investment in key areas and a continued discipline on our discretionary spend.

Total A&P was £6.1m higher year-on-year which reflects the continued rebuild of investment in our brand portfolio. Fixed supply chain costs increased 3.7% primarily driven by utilities inflation across all our sites. During the period we increased production capacity in Brazil and a new can line became operational in GB in early Q2. 

Selling costs increased 6.5% in part driven by the acquisition of Plenish in the second half of 2021 and increased discretionary spend as costs including travel partially normalised.

Overheads and other costs increased 9.7% driven by selective investment in our capability and a year-on-year adverse movement of £2.1m FX-related hedging losses offset by reduced costs following the closure of the Counterpoint business.

Interest

The net finance charge for the period ended 31 March 2022 was £7.8m, compared with £9.6m in the comparative period due to lower average debt levels through the period.

Adjusting items - pre-tax

In the period, the Group incurred, and has separately disclosed, a net charge of £6.4m (2021 restated: £10.7m) of pre-tax adjusting items. Adjusting items comprises:

·    Implementation of an accounting policy change following an IFRIC agenda decision in relation to customisation and configuration costs of Software-as-a-Service (SaaS) arrangements which are now expensed as incurred rather than capitalised. This resulted in charges in the first half of £3.2m relating to IT projects (see notes 4 and 21 to the Interim Financial Statements for more detail),

·    Strategic M&A credit of £1.2m in relation to the remeasurement and utilisation of historic provisions, and

·    Acquisition-related amortisation of £4.3m and other costs of £0.1m.

Taxation

The adjusted tax charge for the period was £13.8m (6 months ended 31 March 2021: £10.2m), which equates to an adjusted effective tax rate of 22.4% (6 months ended 31 March 2021: 21.8%). This increase is mainly due to movements in deferred tax and a small prior year adjustment. The reported net tax charge was £13.4m (6 months ended 31 March 2021:  £8.9m), which equates to an effective tax rate of 22.7% (6 months ended 31 March 2021: 22.4%).

Earnings per share (EPS)

Adjusted basic EPS for the period was 19.4 pence, an increase of 27.8% (at actual exchange rates) on the prior year due to higher operating profits and a lower interest charge.  Adjusted diluted EPS improved 28.5%. Basic EPS for the period was 17.2 pence, an increase of 48.3% on last year.

Dividends

The Board is declaring an interim dividend of 7.8p per share with a total value of £20.9m. The interim dividend for 2022 will be paid on 6 July 2022 to shareholders on record as of 27 May 2022. The ex-dividend date is 26 May 2022.

Share buyback programme

We have a disciplined approach to capital allocation and, as the impact of COVID-19 has declined, have continued to rebuild the balance sheet, while investing in future growth, with adjusted net debt leverage on 31 March 2022 of 2.2x.  Going forward, excluding seasonal movements, leverage is expected to decline further and strong cash generation to continue.  Britvic's long-term policy for leverage is to maintain a range of 1.5x to 2.5x, and we are currently trading well within that range. In the context of Britvic's expected free cash flow and its capital requirements over the next three years, the Board believes it is appropriate to commence an initial £75m share repurchase programme, to be executed within the next 12 months. Britvic will continue to review its balance sheet on an annual basis to assess the strength of the balance sheet, in the context of its growth ambitions. The dividend policy remains unchanged.

Free cash flow

Free cash flow (defined as cash generated from operating activities, plus proceeds from sale of property, plant and equipment, less capital expenditure, interest and repayment of lease liabilities) was an inflow of £2.0m, compared with an inflow of £1.9m in the 6 months ended 31 March 2021.

Cash generated from operating activities before changes in working capital and income tax paid was £95.2m compared with £82.7m in the comparative period, reflecting an improved operating performance and continued tight cash management during the half year.

This half year there was a working capital outflow of £47.6m (6 months ended 31 March 2021: £39.4m outflow), comprising an outflow from increases in inventory of £36.2m (6 months ended 31 March 2021: £17.5m outflow), an outflow from increases in trade and other receivables of £2.8m (6 months ended 31 March 2021: £34.6m inflow), an outflow from decreases in trade and other payables of £5.7m (6 months ended 31 March 2021: £43.5m outflow), an outflow from decreases in provisions of £2.9m (6 months ended 31 March 2021: £3.0m outflow) and no change in other current assets (6 months ended 31 March 2021: £10.0m outflow).

The increased inventory levels since year-end were due to inflation, an increased level of both raw materials and finished goods stock to protect our customer service levels across the Group and further vertical integration of fruit processing in Brazil. Brazil comprised £20m of the total increase in stock holdings.

Net income taxes paid were £9.2m (6 months ended 31 March 2021: £3.8m which benefited from a cash tax rebate in France of £7.0m following the disposal of the juice business).

Cash capital expenditure increased slightly from £23.4m during the 6 months ended 31 March 2021 to £24.6m for the current half year. Lease payments decreased from £6.1m to £4.7m.

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, foreign exchange rates and commodities, while managing the Group's debt and liquidity profile. The Group uses financial instruments to hedge against interest rate and foreign currency exposures as well as commodity exposures, including aluminium, sugar, gas, power and diesel. During the period we extended our hedging activities to include certain resin components.

On 31 March 2022, the Group had £957.9m of committed debt facilities, consisting of a £400.0m bank facility and a series of private placement notes, with maturities between December 2022 and May 2035. The bank facility was undrawn on 31 March 2022.  A one-year extension to the maturity of the Group's £400.0m bank facility was approved by six of the seven lenders in February 2022 extending the maturity of £366.7m of this facility to February 2027. The remaining £33.3m will mature in February 2025.

On 31 March 2022, the Group's adjusted net debt, including the impact of interest rate currency swaps hedging the balance sheet value of the private placement notes, was £533.8m, which compares with £488.5m at 30 September 2021.  Reported net debt of £556.0m (excluding derivative hedges) comprised £580.1m of private placement notes and £2.8m of accrued interest, offset by net cash and cash equivalents of £24.0m and unamortised debt issue costs of £2.9m.

Pensions

At 31 March 2022, the Group had IAS 19 pension surpluses in Great Britain, Northern Ireland and Ireland totalling £164.0m and an IAS 19 pension deficit in France of £1.9m, resulting in a net pension surplus of £162.1m (30 September 2021: net surplus of £131.6m).

The defined benefit section of the GB plan was closed to new members on 1 August 2002 and closed to future accrual for active members from 1 April 2011, with new employees being invited to join the defined contribution scheme. The Northern Ireland scheme was closed to new members on 28 February 2006 and future accrual from 31 December 2018, and new employees are eligible to join the defined contribution scheme. All new employees in Ireland join the defined contribution plan.

Contributions are paid into the defined benefit section of the GB plan as determined by the Trustee, agreed by the Company and certified by an independent actuary in the schedule of contributions. No further deficit funding payments are due to be paid except for the £5.0m annual partnership payment which will continue until 2025. This will be reviewed as part of the next triennial valuation as of 31 March 2022, which is currently in progress.

Non-Executive Directors

As announced in December 2021, Ian McHoul stepped down from his position on the Britvic Board, as of 11 May 2022. Emer Finnan joined as an independent Non-Executive Director on 1 January 2022 and has now taken on the role of Audit Committee Chair, following Ian's retirement from the Board.

Risk management process

As with any business, we face risks and uncertainties. We believe that effective risk management supports the successful delivery of our strategic objectives. The management of these risks is based on a balance of risk and reward, determined through assessment of the likelihood and impact, as well as the Group's risk appetite. The Executive team performs a formal robust assessment of the principal risks facing the Group bi-annually, which is reviewed by the Board. Similarly, all business units and functions perform formal risk assessments that consider the Group's principal risks and specific local risks relevant to the market in which they operate.

Risks are monitored throughout the year with consideration given to internal and external factors and the Group's risk appetite. We continue to further refine and embed our risk management approach across the breadth of the organisation, focussing on driving the effectiveness of the risk management framework across the organisation. Updates to risks and mitigation plans are managed agilely, with changes made as required. In response to the volatile and uncertain external environment, the risk team has continued to support each of our markets and functions in identifying and managing existing and emerging risks to the organisation.