Britvic group revenue rises 14.6%

Full-year revenue at drinks group Britvic rose 14.6 per cent to £1.14 billion, but Ireland continued to present a “difficult” consumer environment.

Revenue at the Irish unit fell 5.2 per cent to £179 million, while volumes increased by 1.3 per cent in the same period to 229.1 million litres.

“The harsh macro and consumer environment in Ireland extended into the final quarter and again contributed to material market declines this year,” Britvic said.

“Almost three years of challenging trading conditions and continuous price deflation have had an adverse impact on ARP, brand and channel mix and operating margins, this year being particularly difficult.”

Despite this, the final quarter of the year saw Britvic Ireland make gains in both volume and value share in the grocery and convenience channels.

The company said it had begun a review of the carrying value of Irish goodwill and other intangible assets, which is expected to result in an impairment charge at the 2010 year end.

Britvic is also restructuring its Irish operations, and discussions with staff are in the early stages, it said. The company announced 145 job losses in January last year and the closure of plants in Cork, Ballyshannon and Waterford.

Elsewhere in the group, the company made gains, with 52-week revenue for the group excluding its acquisition in France rising by 5.9 per cent, and the fourth quarter showing an 8 per cent gain. The GB and International sector of the business saw revenue rise 8.6 per cent for the year.

The GB stills division showed strong revenue growth in the final quarter, growing 5.2 per cent compared to a market ioncrease of 0.9 per cent.

The company said it was still on track to meet market expectations for the group in 2010.

"Britvic has delivered another strong revenue performance in 2010, maintaining our track record of consistent growth. We have outperformed key markets, which continue to prove resilient despite the uncertain consumer environment. We are delighted with both the trading performance and integration of Britvic France, and our action in Ireland will put our business model in optimal shape ahead of eventual market recovery," said chief executive Paul Moody.

"The combination of revenue growth and a tight management of costs mean that we expect to meet market expectations for the group in 2010. Additionally, despite our caution on a weak consumer environment, we are confident at this early stage that we have the focused strategy to deliver another robust set of results for the year ahead."