23rd May 2018 09:27
LONDON (Alliance News) - Britvic PLC said on Wednesday interim profit dipped as revenue rose, with it "too soon to guide" on the likely impact of the UK Soft Drinks Industry Levy but early indications broadly as anticipated
Shares in Britvic were up 5.9% on Wednesday at 803.50p, making it the second best performer in the FTSE 250.
Revenue for the 28 weeks to April 15 rose 4.5% to GBP733.2 million, though pretax profit slipped to GBP41.8 million from GBP50.1 million last year. The company booked restructuring costs of GBP21.6 million in the period.
The soft drinks maker lifted its interim dividend 9.7% to 7.9p from 7.2p.
Revenue in Britain rose 4.6%, with strong growth from low and no sugar brands. Pepsi continued to grow volume and value market share, with no-sugar MAX "significantly outgrowing all other cola variants".
Revenue also increased for 7UP, Tango, and natural energy brand Purdey's. Squash brand Robinsons returned to volume, revenue and market share growth in the second quarter, the company said.
"The strong performance in GB demonstrates the resilience of our business as it was delivered despite the extreme winter weather, the administration of Palmer & Harvey and the break-up of Conviviality," said Britvic.
"We have delivered a strong first half performance with solid revenue, margin and earnings growth. We have also made good progress in innovating to meet consumer needs, growing our international presence and transforming our supply chain," said Chief Executive Simon Litherland.
"While it is too soon to guide on the ongoing consumer impact of the soft drinks levy, early indications of the competitor and customer response are broadly as we anticipated," Litherland added.
Britvic noted that its interim results only include one week of sales data following the introduction of the Soft Drinks Industry Levy in the UK.
"We are beginning to see an increased focus on low and no sugar brands, where Britvic has an advantaged portfolio, due to our long-standing reformulation and innovation programme. Recent competitor reformulation and promotional strategy appears, at this stage, to be broadly as we anticipated," the company said.
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