Britvic's Irish business back in profit despite difficult trading

BRITVIC’S IRISH business returned to profit despite difficult trading conditions as the group’s programme to streamline business came on line.

Operating profit at Britvic Ireland, which owns the Club and Ballygowan brands, was £1.3 million for the period, but revenue was down 11.3 per cent to £89.7 million in the 28 weeks to April 11th.

Volumes for the unit also fell compared to last year, with own-brand sales down 8 per cent and licensed trade down 13 per cent.

“Trading conditions in Ireland remain difficult with consumers focused on price, but our synergies programme continues on track and has helped to deliver a modest return to profit,” said chief executive Paul Moody.

The company announced 145 job losses in January last year and the closure of plants in Cork, Ballyshannon and Waterford as part of a restructuring plan.

Britvic said it was remaining “extremely cautious” on the short-term prospects, and expected the rest of 2010 to be difficult.

The firm predicted the wider group would meet full-year expectations after a strong performance in the first half of the year, and “robust” trading in the early weeks of the second half.

Revenue for the drinks group grew 4.6 per cent over the period to £505.3 million, with the Great Britain and international sector delivering 8.8 per cent growth.

The Great Britain soft drinks market continued to outperform in key categories, gaining market share in core brands such as Pepsi, 7UP, Tango, Robinsons, J2O and Fruit Shoot.

Britvic International’s revenue rose 20 per cent in the period, with new account wins, brand expansion and distribution gains lifting the division.

The company also confirmed it had made an offer to buy French soft drinks company Fruité for €237 million.