Drinks group Britvic has reported a fall in third quarter sales in Ireland despite strong trading across the group in the period.
With year-on-year sales growth of 5.9 per cent in the third quarter coupled with "particularly strong trading" in the period the company said its full-year performance would beat expectations with helped by its British and international arms.
However, in Ireland sales volumes for three months to the end of June were down over 20 per cent and revenues, in euro terms, 24.3 per cent lower.
Britvic said following an encouraging performance in April in Ireland "the trading environment in May and June has been particularly challenging".
Chief executive Paul Moody said: "Whilst Ireland continues to be a very challenging environment with no signs of improvement in the macro-economic conditions affecting the soft drinks market, our GB/International business in contrast continues to perform very strongly.
"As a result, the board now anticipate the full-year outcome is likely to be ahead of the peak of current market expectations."
The supermarket soft drinks market fell over 8 per cent in the 12 weeks to June 14th, Britvic said.
Convenience and licensed outlets were being severely hit by the recession and were contributing to Britvic Ireland's volume decline of over 20 per cent.
Britvic said it had brought forward its trading report in light of its strong performance in the quarter to June 30th.
British and international sales in the quarter grew 11.6 per cent, with revenues from UK still drinks increasing 8.3 per cent and carbonates up 14.4 per cent.
In the UK the firm said Robinsons Squash and Fruit Shoot had performed particularly well and the new adult juice drink Juicy Drench was said to have had a "particularly encouraging" launch.
Mr Moody said: "In Great Britain what has really made the difference for us is that we have had some very big brand sponsorships."
He noted Pepsi's backing of Twenty20 cricket and Robinsons' involvement with Wimbledon, which is in its 74th year.
"What Wimbledon does is allow us to bring some focus to the brand," he said. "The most important part of that fortnight was it was dry and sunny."
Britvic said the British take-home soft drinks market has shown "signs of improvement" in the 12 weeks to June 27th, with the decline in sales volume slowing from 3 per cent in the first six months of the year to 0.7 per cent. This had swung into 3.2 per cent growth in the last month.
Mr Moody said Britvic had been able to buck recent trends towards declines because its products, particularly squash and cola, were relatively resilient to the economic gloom.
Overall this year Britvic said sales increased 6.1 per cent in the full 40 weeks to July 5th, to £732.3 million.
Mr Moody said the firm had worked to reduce costs and reorganise the Irish business, which accounts for less than 20 per cent of the overall group.
Britvic added that its "synergy programme" remains on track to deliver the previously announced total of €27 million by 2011.
But he said the third quarter figures had been further dragged by the comparison with a particularly strong third quarter last year for its UK and international business.
Additional reporting PA