Britvic Sees 'Significantly Improved' Performance As Lockdown Measures Ease
Drinks group Britvic saw a 'significantly improved' performance in the out-of-home channel in the third quarter of its financial year, as lockdown restrictions eased, it said.
The group reported third quarter revenue of £384.8 million (€448.6 million), an increase of 22.8% on the corresponding period last year, adding that it saw revenue growth across all business units.
Year-to-date revenue grew by 3.1%, to just over £1 billion.
As restrictions eased, particularly in the UK, the group saw increased out-of-home and on-the-go sales, as well as a boost from trade restocking ahead of reopening.
'Different Paths Out Of Lockdown'
It added that the recovery of its out-of-home business in Ireland lags that of the UK, 'reflecting the different paths out of lockdown'.
The group said that its at-home business saw an increase in revenue in Brazil, France and Ireland during the quarter, with its Brazil unit, which recently announced the appointment of a new managing director, seeing double-digit growth.
In May, Britvic announced the acquisition of plant-based beverage brand Plenish, to bolster its presence in this growing category.
Britvic Benefits From Easing Of Restrictions
“Performance in Q3 was encouraging, as we benefited from the easing of lockdown restrictions, while also continuing to perform well in the At-Home channel," commented Simon Litherland, Britvic chief executive.
"Some degree of uncertainty remains for now, however, as the full course of the pandemic is still unknown. That said, the momentum we had built up going into the pandemic has stood us in good stead throughout, and I am confident that we will continue to navigate our way through it successfully."
Britvic added that while its product and pack mix improved in the quarter, it has not yet returned to pre-pandemic levels. However, the business is 'confident' of seeing an improved performance both during the busy summer period and for the remainder of the year.
It expects profit to come in 'within the range' of current market expectations.
"We remain committed to rebuilding investment behind our portfolio of market-leading brands to ensure we continue to emerge strongly and are well-positioned for the recovery as it evolves," Litherland added.
"We remain confident that our strategy is fit for the future and will continue to drive growth and create sustainable value for all our stakeholders.”