Soft drinks firm profits hit by rising costs

Soft drinks firm Britvic saw profits fall by over 11 per cent despite an increase in revenues over the last 12 months.

The Somerset company said the drop in profit to £124m was mainly driven by a rise in costs.

Revenue increased 6.6 per cent to £1.748bn driven by price and launch of new brands and offers.

The firm said demand remained strong but there was a modest volume decline due to a tough fourth quarter comparable of the hot summer in Europe in 2022 and poor weather in the summer.

The standout performances were from Tango and Pepsi MAX.

The company completed bolt-on acquisitions in the UK and Brazil to access fast-growing categories and ontinued investment in growth capacity, with new lines operational in both countries.

Chief executive Simon Litherland said: “We have delivered another set of excellent results, making strong progress across our People, Planet and Performance measures.

“Our portfolio of family favourite brands and focus on great tasting, healthier drinks offer both quality and value at affordable prices.

“ We have continued to invest across our supply chain, adding capacity and upgrading technology, while also building our brands and portfolio, including the acquisitions of Extra Power in Brazil and Jimmy’s Iced Coffee in Great Britain.

“Looking ahead, we have clear strategic priorities for 2024 and an exciting programme of marketing and innovation launches coming to market. With our fantastic portfolio and talented, engaged team, I am confident Britvic will continue to make excellent progress next year and beyond, delivering growth and creating value for all our stakeholders.”

Britvic was founded in England in the 1930s, it has grown into a global organisation with 39 brands sold in over 100 countries.

The company combines its own leading brand portfolio including Fruit Shoot, Robinsons, Tango, J2O, London Essence, Teisseire and MiWadi with PepsiCo brands such as Pepsi, 7UP and Lipton Ice Tea which Britvic produces and sells in Great Britain and Ireland under exclusive PepsiCo agreements.