Britvic profits down 19%
Listed UK soft drinks maker Britvic cited poor summer weather and a product recall when it posted a 19 per cent fall in annual profit yesterday.
Britvic – which produces lines such as Tango and Robinsons in the UK and Ballygowan, Club and Miwadi in Ireland – said underlying pre-tax profit was £84.4 million in the year to September 30th, down from £105.1 million a year earlier.
The group, which also makes and sells Pepsi brands in Ireland and Britain, said a strong carbonates performance in Britain and market share gains had been undone by a recall of its Fruit Shoot drink over faulty caps. The recall will cost it £16.9 million this year, and up to £8 million in 2013, it said. It pushed total group revenue down 0.8 per cent to £1.26 billion at constant exchange rates.
Revenue at Britvic Ireland fell by £24.1 million to £138.7 million, with the group saying trading in Ireland remained difficult, with disposable incomes down, rising domestic bills and a fragile economic environment.
Earlier this month, Britvic agreed terms on a £1.4 billion merger with rival and Irn-Bru producer AG Barr.
The all-share deal will create one of Europe’s biggest soft drinks firms, Barr Britvic Soft Drinks.