Hot July and World Cup helps Britvic

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Manufacturing News, Source : TheManufacturer.com
Published : 29 Sep 2006 9:37
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A hot July and the World Cup helped drinks maker Britvic to improved trading in the 20 weeks to 3 September, it said in an update today.

Revenue growth of 0.4 per cent compared with the same period last year,was driven by growth of 7.5 per cent in healthier still drinks while sales of frowned-upon fizzy drinks were down 5.8 per cent. Branded revenue for the first 48 weeks of the year compared with the same period last year was down 2.6 per cent, against a first half decline of 5.3 per cent, with stills up three per cent and carbonates down 7.5 per cent.

During the 20 week period to 3 September, the total carbonates market had experienced very marginal growth helped by a hot July, a favourable impact from the World Cup, significant new product introductions and a high level of promotional activity, the company said.

Higher prices combined with the delivery of £10 million of its cost savings programme in the 2006 financial year is expected to result in improved margins and profits in the second half.

"We have achieved an improved performance in the 20 week period, particularly within the important faster growing stills market,” said chief executive Paul Moody. “Although the trading environment within carbonates remains competitive, our improved performance combined with our continued focus on ARP (average realised price) and costs means we anticipate that the outturn for the year will be towards the top end of the range of current market expectations."