just On Call - Cost-cuts will mean more "focussed" business - Britvic CEO
Britvic is targetting cost savings of GBP30m a year to 2016
Britvic's CEO has said the company's new strategy, including a major cost-cutting exercise, will lead to a "simpler, focussed and more agile organisation".
Speaking during an investors' conference call, following the group's half-year results today (22 May), Simon Litherland said the measures will help generate faster sales growth, lower fixed costs and a higher return on its capital expenditure. The plans include closing three of Britvic's UK sites - two in England and one in Nothern Ireland - resulting in up to 400 job losses.
Meanwhile, the group's FD, John Gibney, said that sugar costs remain the "most challenging" area for the business. "What we have seen is an overall easing of cost pressures, with the notable exception of sugar." However, he said that the company's margins on still drinks have been "very strong".
Earlier, Litherland flagged that Britvic's Fruit Shoot brand was continuing to recover following a costly recall last year and the company expects its marketshare to return to "pre-recall" levels by the end of this year.
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
The company is focused on following three main strategies in 2013 in order to maintain its presence as one of the leading soft drinks manufacturers in the UK. These are innovation, increased distribut...
Barr (AG) Plc is focused on joining forces with Britvic Soft Drinks Ltd to become a joint partner company in what is expected to be the largest European soft drinks company. The formulation of the mer...
- Is Diageo on the Brink of a Brain Drain?
- SABMiller edges Diageo as beer trumps spirits
- Comment - Heineken's move for Pivovarna Lasko
- Will Keurig Kold come to Coca-Cola Co's Rescue?
- Focus - SABMiller's FY Sales Performance by Region
- Rémy Cointreau eyes recovery after Q4 bounceback
- Carlsberg exec joins Diageo as Africa chief steps
- Belvedere unveils executive team
- Diageo YTD sales come in flat
- Diageo targets Millennials with DeLeon ads