Britvic Irish unit generates revenue of £147m

Britvic’s Irish division, which owns the Ballygowan and Club Orange brands, added £147.2 million (€186.4m) worth of revenue to its UK parent in the first nine months of the year.

In an interim management statement this morning, the company said Irish sales rose 6.1 per cent in sterling terms, although this was in part due to exchange rate movements.

Underlying euro sales were 5.2 per cent lower and volumes down 2.9 per cent in the 40 weeks to July 6th.

"Britvic Ireland continues to maintain share in all of its key categories and achievement of the synergies within Ireland outlined at the time of the acquisition remain on track," the company said.

The company said economic conditions in Ireland have become markedly more challenging in the last three months, driving a low to mid-single digit decline in off licence and pub sales.

The cost of raw materials "remains a significant challenge for the sector", the company said with oil, plastic and other raw materials expected to rise 4.5 per cent, "marginally" more than forecasts.

The overall British soft-drinks market was still expanding, but at a "very low'' pace in terms of store sales and weakening further in pubs and bars, the company said.

Britvic said sales rose 30 per cent, boosted by the purchase of C&C's soft drinks business last year for €249 million.

Group sales were £690 million.

Paul Moody chief executive officer said: "Although we anticipate rising input and energy cost pressures, our focus on cost control allows us to remain confident'' that annual earnings will meet analysts' estimates".

Pub sales of soft drinks will "remain challenging," the company said.

Revenues from Britvic's main market in the UK were 4.3 per cent higher for still beverages and up 2.5 per cent for carbonated soft drinks.