27th Jan 2016 07:59
LONDON (Alliance News) - Britvic PLC said on Wednesday its trading for the first quarter to December 20 had been hit by difficult trading conditions, but that revenue was boosted by encouraging Christmas trading.
The soft drinks company reaffirmed its earnings before interest, tax, depreciation and amortisation guidance range of GBP180 million to GBP190 million, after it said it saw good trading in its core markets over the entire Christmas period, with reported revenue for the first quarter 4.8% ahead of last year at GBP311.6 million.
However, the company's revenue was hit by a slow start in October, as well as a revenue decline in the UK market due to tough trading conditions in the grocery channel, and on an organic basis, reported revenue was down 2.4% to GBP290.1 million.
The company said, whilst sales in Ireland were up 1.0%, following a strong performance by its wholesale division Counterpoint, revenue was down by 5.5% in France, 1.2% in Great Britain and 14% in its comparable International revenue sector.
Low margin private label sales and weaker trading conditions in Benelux were some of the reasons cited by the company for this drop.
"As anticipated, our first quarter performance reflected both the prevailing challenging trading conditions and a slow start in October. However trading over the entire Christmas period in our core markets was encouraging, with revenue ahead of last year, and in the quarter, we grew or held market value share in each of these markets," said Simon Litherland, chief executive.
By Hannah Boland; [email protected]; @Hannaheboland
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