17th Oct 2013 07:36
LONDON (Alliance News) - Drinks maker Britvic PLC Thursday raised its operating profit guidance after reporting a strong rise in fourth-quarter revenues as it raised prices, increased market share and the hot summer increased demand for its beverages.
The maker of Robinsons cordials, J2O and Tango among other brands said it now expects its operating profit for the year to September 29 to be slightly above the top end of the GBP125 million to GBP131 million range it had previously forecast as revenues increased everywhere apart from Ireland.
It said total revenue rose 12.8% to GBP366.4 million at constant exchange rates in the fourth quarter, buoyed by the hot summer weather and as sales of Fruit Shoot got back to levels seen before it had to recall the drink last year due to a safety scare over the plastic caps it previously used on the drink's bottles. Revenues were up 15.9% at actual exchange rates.
It said it increased prices 5.4% over the course of the whole financial year, with volumes slightly down over the 12 month period due to the Fruit Shoot recall and as Ireland continued to be weak.
Revenues were up 13.8% in the UK in the fourth quarter and up 4.4% for the whole year, French revenues rose 13.5% for the quarter and 6.2% for the year, while international sales rose 35.7% in the quarter and 28% in the year as a whole.
Britvic, which also bottles and distributes PepsiCo products like Pepsi and 7UP in the UK and Ireland, said Irish revenues were down 3.5% for the whole year, although they were up 1.8% in the fourth quarter which the company put down to good weather.
"We have delivered another strong performance in the fourth quarter, growing volume and revenue in all our business units and increasing our market value share," Chief Executive Simon Litherland said in a statement. "While we have benefitted from the good weather this summer, especially in July, we are particularly pleased to see that Fruit Shoot's market share is now back at pre-recall levels and continues to grow."
It cautioned that the consumer environment remains challenging in all of its markets as disposable incomes remain under pressure, and said it would update markets on its new strategy plans and cost-saving initiatives when it reports its full results November 26.
In May, the company said it was looking at a new strategy to accelerate growth, and was looking to cut costs by GBP30 million a year by 2016 while increasing investments by GBP10 million a year by 2015.
Britvic shares were up 1.8% at 611 pence early Thursday, an all-time high and making it one of the top gainers on the FTSE 250.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Britvic