Britvic holds on to guidance despite "challenging" Q1, shares rise
Soft drinks manufacturer Britvic reassured investors on Tuesday by maintaining its full-year profit guidance in spite of “challenging trading conditions” in core markets during its first quarter.
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The company, which makes J20, Robinsons and 7up, said that revenues totalled £304.3m in the 12 weeks to 21 December 2014, down 0.4% year-on-year, as flat prices were offset by a 0.3% decline in volumes.
Sales in Ireland were up 2.8% and increased by 2.3% in France, but were down 1.4% in the UK, its largest division, due to a more competitive promotional environment.
Meanwhile, international revenues fell 3.6% due to falling volumes in the travel sector and lower orders for US concentrate compound.
Nevertheless, the company held on to its forecast for earnings before interest and tax of £164m-173m for the year ending September 2015, up from £158.1m previously due to cost-saving initiatives.
“Whilst we expect the trading environment to remain challenging, we have strong marketing plans and a significant innovation pipeline in place for 2015,” said chief executive Simon Litherland.
“These strong commercial plans, supported by ongoing cost benefits from our major strategic initiatives programme, mean that we remain confident of delivering further profitable growth in 2015 in line with our guidance range."
The stock was up 6.6% at 688.5p before the close in London.