Britvic 'In Good Shape' Following Third Quarter Results
Soft drinks maker Britvic has posted third quarter revenue of £384.6 million, a constant currency increase of 6.5% year-on-year, which means the business is "in good shape" to post a strong full year, according to chief executive Simon Litherland.
Volume in the period increased by 2.3%, with organic revenue increasing by 4.5%, excluding the recent acquisition of the Bela Ischia business in Brazil.
"We have continued to execute our strategic priorities and deliver a robust performance, whilst taking proactive action to successfully mitigate external headwinds," said Litherland.
"Trading in the third quarter has been strong with group volumes, ARP and revenue ahead of last year, driven by a range of factors including our focus on growth channels, successful revenue management, delivery of our business capability programme and favourable weather."
Region By Region
Britvic's domestic business in the UK saw revenue increase 4.9%, with volume growth of 3.4% and average retail price growth of 1.5%. Its carbonates business grew by 7.6%, led by the performance of Pepsi Max and R Whites lemonade.
In France, revenue was up 11%, driven by volume growth of 3.9% and price increase of 6.8%. In Ireland, revenue was up 10.6%, thanks to the performance of its wholesale business, Counterpoint.
International revenue was flat in the quarter, however Britvic noted that Brazil remained 'challenging', with organic revenue, again excluding the acquisition of Bela Ischia, declining 22.5% for the period.
"Looking ahead to the full year, we remain confident that EBITA will be in line with current market expectations despite challenging comparatives for the fourth and largest quarter and a mixed economic backdrop," Litherland commented.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.