Britvic Ireland revenues down 3.5%
Plans for Ballygowan’s market entrance to the UK are progressing with the Irish brand set to become Britvic plc’s single water brand for the UK and Ireland next Spring according to Britvic plc’s preliminary results which show that revenues at Britvic Ireland were down 3.5% to €163.5 million (£136.9m) from €165.67 million (£138.7m) in the year to 29th September 2013 although brand contribution margins were up.
26 November 2013
According to the company, “The licensed wholesale business margin is materially lower than the core branded business, which as a result had a positive mix impact on brand contribution and margin”.
Irish volumes were down too from 201.3 million litres to 199.0 million litres however local Britvic Ireland brands (Club, Ballygown, MiWadi etc) gained market share over the year when “underlying market conditions remained difficult in Ireland”. The company added, “In the second half of the year we saw a tangible benefit from the warm weather in July and August whilst the market in September was much more subdued. Over the year we grew take-home market value share with a minimal loss of volume share reflecting our focus on revenue management.
“The decline in the licensed wholesale business was the driver of the 3.5% revenue decline and more than offset the revenue growth in the core branded business.”
Britvic Ireland is the Number Two soft drinks business in Ireland with a 24% market share and employs some 500 staff on the island of Ireland.
Some 98% of the soft drinks it sells in Ireland are produced in Ireland. Exports account for some 25% of what it manufactures (including Fruit Shoot concentrate) at its Dublin manufacturing facility at Kylemore Road. Britvic Ireland also manufactures the Fruit Shoot concentrate for export and Fruit Shoot is to become available in 41 US states next year following the signing of a long-term exclusive bottling agreement with PAB for both expanded distribution and additional manufacturing capacity.
Parent company Britvic plc grew pre-tax profits 6.6% to £82.6 million (€98.63m)in the year from £77.5 million (€92.54m) the previous year on turnover up 4.7% to £1.32 billion (€1.58bn) from £1.26 billion (€1.50bn).
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