News Column

Britvic Lifts Earnings Guidance Following Strong Third Quarter

July 24, 2014

Anthony Tshibangu

LONDON (Alliance News) - Britvic PLC Thursday said it expects earnings before interest, taxation and amortisation for the year ended 29 September to be towards the top end of its GBP148 million to GBP156 million guided range, after group revenue in the third quarter to July 6 rose to GBP329.5 million from GBP216.3 million year earlier.

The British maker of Robinsons cordial and Tango soft drinks said UK carbonates revenues increased 10% in the third quarter compared with a year earlier, building on the strong growth achieved in the first half of the year.

FTSE 250-listed said third-quarter UK carbonates volume, led by Pepsi, increased 9.9%.

In Ireland revenue declined 2.5% in the period, while in France revenue grew 5.6% on a year earlier. Britvic said revenue growth has been achieved across its French portfolio and Fruit Shoot continues to be a popular brand in the children's juice drink category.

Internationally, Britvic said third quarter revenue grew 3.8%. However it said revenue during the period was weaker than expected as the transfer of a Fruit Shoot production line to France resulted in a short-term restriction of supply into European export markets.

Shipments of concentrate to the US increased, Britvic said, and in the US market Fruit Shoot continues to gain momentum with new listings and new independent bottler agreements secured in the last quarter.

"The business has continued to grow, despite the challenging retail trading and consumer environment in our European markets," Chief Executive Simon Litherland said in a statement."Whilst we are now starting to lap particularly tough comparatives, as a result of the exceptionally warm weather last summer, early trading in the fourth quarter is in line with our expectations."

Britvic shares were quoted down 0.5% at 732.50 pence Thursday morning.

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Source: Alliance News

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