Britvic Revenue Up 3.3% In 'Solid' Quarter, But Volume Sales Take A Hit
Soft-drink maker Britvic has reported an increase in revenue in the first quarter of the year, however, volume sales were down across nearly all regions.
The group, which produces brands such as 7Up and Robinsons, saw sales rise 3.3% to £337.2 million compared to the previous year, while organic revenue, excluding the acquisition of Bela Ischia in Brazil, was up by 0.7%.
In spite of this value growth, Britvic saw volume sales decline across all business regions, with the exception of Ireland (+0.2%) and Brazil (+23.1%), which were both boosted by acquisitions.
Simon Litherland, the group's chief executive, described this as a "solid start to the new financial year."
"Our continued focus on revenue and cost management and the delivery of the final phase of our business capability programme means we remain confident of making further progress in 2018," he added.
Britvic says that it is in the final phase of transforming its supply chain, which aims to deliver 'significant cost and commercial benefits'.
As part of this restructuring, the group has announced that it will close its Norwich factory in the UK next year.
In 2017, the company reported that revenue increased by 7.7% to £1.54 billion, however, profit after tax fell 2.5% to £111.6 million, as a result of increased costs and investment.
It claimed that the group delivered its strategic priorities in the face of a "challenging external environment", but added that the so-called 'sugar tax', which is set to be introduced in the UK and Ireland this year, will bring an additional challenge.
"The introduction of a soft drinks industry levy in the UK and Ireland brings a level of uncertainty," Litherland said in today's trading update.
"But we are well placed to navigate this given the strength and breadth of our brand portfolio and exciting marketing and innovation plans," he added.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.