Britvic Ireland returns to profit

Britvic's Irish business returned to profit despite difficult trading conditions, as the group's programme tp streamline its business took effect.

Operating profit at Britvic Ireland, which owns the Club brands and Ballygowan water, 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 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 Januiary 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 GB &  International sector delivering 8.8 growth.

The GB 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.

"During the period we saw sustained market growth in GB, and recent conditions across the wider market have continued to demonstrate elements of recovery. However visibility in both GB and Ireland beyond the short-term remains limited," said Mr Moody.

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 today it has made an offer to buy French soft drinks company Fruité for €237 million.