Britvic profit declines in first half

Profit at drinks group Britvic fell to £27.7 million in the first half of the year, but the group said it was confident in its outlook for the rest of the year.

Total group volumes rose to 1.1 billion litres, a 16.6 per cent rise, while revenue increased 25.3 per cent to £633.1 million.

Excluding France, which Britvic acquired on May 28th, 2010, volumes rose by 0.4 per cent for the 28 weeks ended April 17th, and revenues rose 2.1 per cent.

“This reflects a strong second quarter performance in the GB business where revenue grew by 6.8 per cent, leading to first-half revenue growth of 4.0 per cent,” Britvic said.

Group earnings before interest, taxation and amortisation was £45 million, up from £41.7 million.

Volumes in the Irish market were 7 per cent lower, while revenue fell 5.3 per cent on a constant currency basis. Britvic said the Irish impulse and licensed channels were “particularly challenged”, which drove down volumes and revenue.

However, average realised price - the average revenue per litre sold - grew by 3.9 per cent on a constant currency basis, and the group’s stills portfolio performed well.

Britvic Ireland announced a restructuring plan earlier this year, the benefits of which will be delivered in the second half of the financial year, the group said.

Chief executive Paul Moody described it as a “solid” set of results.

He said restructuring at the Irish unit was completed and full-year restructuring costs aren't expected to exceed the £10 million, flagged in March.

"Given the program that we've operated, that is the conclusion of the exceptional items in relation to the Irish restructuring," Mr Moody said.

Britvic said today it recorded a £7.5 million restructuring charge for its Irish business in the 28-week period. Mr Moody said he expects to take the remaining £2.5 million charge in the second half.

“Our input cost inflation guidance for the remainder of the year is unchanged. We are focused on executing a strong programme of innovation and brand activity throughout the group and trading in the first few weeks of the third quarter provides the board with further confidence in the outlook for the balance of the year," Mr Moody said.