Britvic releases fourth quarter and full year trading update

Britvic's core markets benefitted from the warm weather in July and has grown in both price and volume

Britvic has seen steady growth this quarter thanks to good weather in July

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Britvic’s core markets benefitted from the warm weather in July and has grown in both price and volume

Britvic today (17 October) released its fourth quarter (Q4) and full year trading update. The soft drinks business reports its core markets benefitted from the warm weather in July and, despite the continued challenging consumer environment, the group has grown in both price and volume. It also reports that in each of its markets it has grown market value share. With this strong performance, Britvic believes its operating profit will be higher than expected.

On the release of the report Simon Litherland, chief executive, Britvic, commented: "We have delivered another strong performance in Q4, growing volume and revenue in all our business units and increasing our market value share. 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. As a result of this strong Q4 performance, we expect that our operating profit will be slightly above our previous guidance.

"In each of our markets the consumer environment is challenging as disposable incomes remain under pressure and consumers continue to seek value. As we move into the new financial year our focus is on delivering the new strategy and cost-saving initiatives we communicated in May."

In Ireland, Q4 revenue increased by 1.8% (FY: -3.5%). The underlying trading conditions remained largely unchanged for the group from last year with the revenue growth in Q4 reflecting the benefit of the good weather. ARP was down 2.9% in Q4, reflecting the on-going consumer focus on value.

Report highlights:

Fourth quarter:

• Group revenue up 12.8% (15.9% Actual Exchange Rate) to £366.4m, benefitting from the warm weather in July and full availability of Fruit Shoot compared to this time last year
• Volume and pricing growth in GB, France and International
• Fruit Shoot market share in GB back to pre-recall levels and ahead in France and the Netherlands

Full year

• Group revenue growth of 4.4% (5.2% AER) to £1,321.9m
• Significant pricing growth of 5.4%, with all business units in growth
• Marginal decline in volume, reflecting the limited Fruit Shoot availability earlier in the year and the weak Irish market
• Operating profit expected to be slightly above the top end of the £125m to £131m previous guidance range

Britvic is one of the leading branded soft drinks businesses in Europe. The company leverages its own leading brand portfolio including Robinsons, Tango, J₂O, Fruit Shoot, Teisseire and MiWadi, as well as PepsiCo brands such as Pepsi, 7UP and Mountain Dew Energy which Britvic produces and sells in GB and Ireland under exclusive PepsiCo agreements.

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