Revenue rises 4.4% at drinks group Britvic
But volumes fall marginally as weak Irish market continues to weigh
Drinks group Britvic said the warm weather in July lifted its fourth quarter results. Photograph: Chris Radburn/PA Wire
Revenue at drinks group Britvic rose 4.4 per cent in the year to the end of September, but a weak Irish market continued to weigh on results.
The drinks group, which includes the brands Robinsons, MiWadi, Ballygowan and PepsiCo brands such as Pepsi, 7UP and Mountain Dew Energy produced under licence in the UK and Ireland, said it expected to beat previous operating profit estimates.
But although group revenue rose to £1.32 billon for the year, there was a marginal decline in volume as the availability of Fruit Shoot products was limited earlier in the year, due to a recall sparked by safety concerns over a redesigned bottle.
Chief executive Simon Litherland said the company had delivered a strong performance in the fourth quarter, growing both revenue and volume, and adding to its market share. That would lead to operating profit above the company’s previous guidance, he said.
The warm weather in July helped lift fourth quarter results, Britvic said, with group revenue up 12.8 per cent in the three month period to £366.4 million.
In Ireland, revenue rose by 1.8 per cent in the fourth quarter of the year, but decline by 3.5 per cent for the year overall. The lift in revenue in the final three months of the fiscal year was attributed to the warmer weather in July, with Britvic noting underlying trading conditions remained largely unchanged from last year.
International revenue was up 35.7 per cent in the fourth quarter, and 28 per cent for the year.
“In each of our markets the consumer environment is challenging as disposable incomes remain under pressure and consumers continue to seek value,” Mr Litherland said. “As we move into the new financial year our focus is on delivering the new strategy and cost-saving initiatives we communicated in May.”