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.
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