Britvic dragged down by Ireland’s economic woes
SOFT drink supplier Britvic, which has major operations in the West Midlands, has announced a 15% rise in full-year revenue although pre-tax profit was broadly flat, up just 0.5% on last year.
Economic woes in Ireland have been blamed for dragging down the group’s overall performance.
Group revenue for the year to October 2, 2011 rose to £1.29bn (2010: £1.12bn), a rise of 15.1%, while profit before tax was £105.1m (2010: £104.6m), with the 0.5% rise wiped out on a constant exchange rate basis.
The full year dividend per share was up 6% on last year to 17.7p per share.
The company, which produces brands such as Robinsons, J2O, Fruit Shoot and Tango, said its operations in the UK, France and the rest of the world all delivered positive volume and revenue growth, although the problems in Ireland constrained overall group growth.
It said it had also agreed three major new deals for its Fruit Shoot brand in the United States, doubling its coverage to six states.
Also, Britvic product is to be manufactured in the US for first time under new agreement with Pepsi Bottling Ventures, the largest independent Pepsi bottler in the US. The deal will see the drinks manufactured and distributed in North and South Carolina.
It has also agreed with Gross & Jarson, the third largest Pepsi bottler in the US, to distribute in Kentucky.
Fruit Shoot will also be distributed in Florida and Georgia through Pepsi Beverages Company. PBC is the wholly-owned manufacturing, sales and distribution operating unit of PepsiCo.
Paul Moody, Britvic chief executive, said: “Britvic has delivered a robust set of results, despite the particularly challenging economic backdrop in 2011. Our GB, France and International business units have each produced revenue and volume growth this year, leading to an increase in total group revenue of almost 15%. This performance reflects the strength of our brands and the quality of our innovation programme, as well as the continued focus on revenue management.
“We are particularly delighted with the progress that we have made with the internationalisation of Fruit Shoot. The announcement today of three major new agreements for this Britvic-owned brand in the United States gives us material additional territories, new distribution partners and, significantly, an agreement with PBV to begin production in the US; important steps towards realising our ambitions for Fruit Shoot.
“The political, financial and social environment in which we operate will remain challenging, but we are confident in our ability to compete strongly and to deliver another solid set of results for the year ahead, in line with our expectations.”
