20th Oct 2020 09:13
(Alliance News) - Shares in Brtivic PLC jumped on Tuesday after the soft drinks maker landed a 20-year franchise bottling agreement with the US's PepsiCo Inc and said financial 2020 adjusted earnings before interest and tax will be "slightly" ahead of current market estimates due to better-than-expected trading in peak summer period.
Trading has benefited from both the limited re-opening of the UK hospitality sector since early July and continued strong trading in the at-home channel across its markets, the company explained. In the year ended November 27, 2019, adjusted Ebit amounted to GBP214.1 million.
For 2021, Britvic expects further lockdown restrictions and the impact of social distancing measures in the hospitality sector to impact performance. However, it remains confident in its long-term prospects and anticipates rebuilding investment in 2021.
Britivic shares were up 5.1% at 789.00 pence each in London, one of the best performer in the FTSE 250 index.
Under the agreement with the PepsiCo, Britvic will manage the production, distribution, marketing and sales of soft drink brands such as Pepsi, 7UP and Mountain Dew in Great Britain.
The new pact extends the relationship between the two firms to 2040, having begun all the way back in 1987. The new deal also includes the Rockstar energy drinks brand, which Pepsi agreed to acquire to USD3.85 billion back in March.
Britvic also said that it intends to use 100% recycled plastic for all plastic bottles by the end of 2022 - three years earlier than originally planned, and ahead of the previous target of 50%.
"This will cover the entire Great Britain portfolio of Britvic-owned and PepsiCo brands, and demonstrates both companies' commitment to sustainability and to a healthier planet," the The Hertfordshire, England-based company said.
By Tapan Panchal; [email protected]
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