29th Jan 2014 10:02
LONDON (Alliance News) - Britvic PLC reported Wednesday a good start to the year, as revenues in the first quarter were boosted by price increases and increased market share.
The British maker of Robinsons cordial and Tango soft drinks said it saw revenue growth in its GB carbonates division, in Ireland, France and internationally during the period, despite a challenging consumer environment. It also said it has seen a good start to the second quarter.
"Trading in the first few weeks of the second quarter is ahead of last year, and we remain confident that earnings before interest and taxes this year will be within the range of GBP148 million to GBP156 million," said Chief Executive Officer Simon Litherland in a statement.
Britvic said revenues for the group increased by 2.8% in actual exchange rates, to GBP311.8 million in the 12 weeks to December 22 2013, and increased 1.3% on a constant currency basis.
It said revenues were driven by a positive price and sales mix, as its raised prices by an average of 2.7%.
Overall it said its GB still and carbonates division grew by 1.5%, boosted by a 3% increase in prices, and growth of 2.5% in GB carbonates, as Pepsi continued to outperform the cola category, and grew market share. However it said GB still-drink revenue declined by 0.3%, as a 3.4% fall in volume offset positive price and mix.
Fruit Shoot drinks continued to grow in the quarter, whilst Robinsons and J2O volumes declined, hit primarily by competitor price activity, the company said.
Britvic said in Ireland revenue grew by 2.1% on a comparable basis despite continued tough trading conditions, but reported revenue declined by 5.8% due to eight fewer days trading in the period.
In France revenue grew by 4.7%, and its international business unit saw revenue growth of 5.6% in the first quarter, driven by both volume growth and price increases.
"Revenue growth was slower than in previous quarters due to the phasing of concentrate shipments to the US. Fruit Shoot continued to grow its market presence in the US, whilst in India we remain on-track to launch Fruit Shoot in mid-2014," said the company.
Britvic shares were trading 2.1% higher at 715.50 pence per share Wednesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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