Britvic flat but still confident

Manufacturing News, Source : TheManufacturer.com
Published : 30 Nov 2006 10:12

Drinks maker Britvic has seen a dip in the popularity of its fizzy drinks countered by sales of water and juices.

Announcing its results for the year ended 1 October – which showed an improved second half profit performance – the company said stills revenue were up 5.6 per cent in the second half, driven by new water brand launches and a solid performance from the key categories of adult, juice drinks and squash. The fall in carbonates revenue slowed in the second half but was still down 4.7 per cent. Britvic said its management continued to focus on promotional efficiency and maintaining prices in a market that benefited from a hot July, the impact of the World Cup and a major new product launch.

Over the year, fizzy drink sales fell 6.8 per cent from £357 million to £332.5 million while stills revenue was up 2.4 per cent from £314 million to £322 million.

Overall operating profit (£73.7m) and profit after tax (£39.6m) were flat on prior year,

Chief executive Paul Moody said the second half of the financial year had showed a marked improvement in volume and revenue against the backdrop of a difficult carbonates market and continued growth in the stills market.

“The improved revenue trends seen in the second half have continued into the new financial year and have driven the Group's trading performance over these early weeks. However given the volatility in the carbonates market we remain cautious on the outlook for this category,” he said.

“Britvic is well placed to benefit from the continuing consumer trend towards health and well-being and our new brand and product innovations, scheduled for launch in the first half of calendar 2007, remain focused on the growing stills category.”

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