UK: Britvic FY profits leap as sales fizz

Britvic, the UK's biggest soft drinks group, has said it sees "encouraging signs" on the market after reporting a jump in full-year profits and a healthy sales rise driven by core brands.

Net profits leapt by 47% to GBP46.8m (US$77.6m) for the 12 months to 27 September, compared to the previous year, Britvic said today (25 November). Excluding exceptional items and tax, profits were GBP86.5m, representing a 23% rise on the year before.

Britvic outperformed the UK soft drinks market to report an 5.6% rise in net sales for the year, to GBP978.8m from GBP926.5m.

Rebounding carbonated drinks sales, which rose by 11% thanks to core brands Pepsi, 7UP and Tango, led the rise, said the group, which owns the licence to PepsiCo drinks in the UK and Ireland. International sales, excluding Ireland, rose by 18.5% as the firm benefited from growth for Robinsons squash and Fruit Shoot brands in the Netherlands and Scandinavia.

"Over the last year our brands have grown market share across all key categories and our portfolio has been strengthened by successful innovation," said Britvic CEO Paul Moody.

Operating profits for the year increased by 14% to GBP110m, despite higher costs in the firm's still soft drinks division and a 17% decline in the Ireland business. 

Ireland remained the thorn in Britvic's side, with net sales down 5.6% over the year.

In the group's outlook, Moody said: "We are encouraged by our strong group performance in the early weeks of the new financial year."

But, he added: "Visibility in both GB and Ireland beyond the short term remains limited and we take a cautious view of consumer spending."

For the full announcement, click here.

For an update on Britvic, following the group's conference call, click here.