Britvic Sees Income Slides As Coronavirus Curbs Hamper Demand
British soft drinks maker Britvic has posted a near 22% slide in adjusted operating income for the year as coronavirus restrictions hurt demand at bars, restaurants, cinemas and other public places.
The company said adjusted earnings before interest and taxes (EBIT) fell to £165.8 million (€185.8 million) for the 12 months ended September 30, from £214.1 million (€239.9 million) a year earlier.
Reported revenue decreased 8.6% to £1.41 billion (€1.58 billion) in the full-year period.
Delivering On Priorities
“While none of us would have wished for the challenging circumstances 2020 has brought, I am very proud of how we have responded as a business and delivered on the priorities we set ourselves at the start of the pandemic," commented Simon Litherland, Britvic chief executive.
"So, even though out-of-home trading has inevitably been impacted, we have continued to gain market share in our key growth markets of GB and Brazil, and we have successfully protected cash and our overall financial strength."
On a strategic basis, Britvic said that it had extended its carbonates relationship with PepsiCo in GB to 2040, increased its participation in the energy category, adding PepsiCo’s Rockstar to the portfolio alongside Purdey’s, and completed the sale of its juice factories and private label contracts in France.
The FTSE 250 company's shares, which have dropped 10.4% so far this year, were unchanged at Thursday's market open.
Britvic's results come as a stark contrast to that of Coca-Cola Co, which in October posted stellar quarterly results and said consumers were buying more sparkling soft drinks and juices from grocery stores and online.