UK: Britvic profits buck poor summer trend for FY
Britvic has posted a "resilient" set of results for its full year, in spite of the poor weather this summer.
The UK-based soft drinks firm said today (29 November) that operating profit for the 12 months to the end of September came in 8.5% higher than a year earlier, reaching GBP80m (US$). The lift came on the back of rising sales, up by 3.7% to GBP702.5m.
Net profit climbed by 11.1% to GBP44m.
The company said it saw "a resilient second half performance given the extremely poor summer weather and tough FY06 comparatives".
Despite the bad weather this summer, Britvic saw revenue from both its stills and carbonates portfolios increase in the year, by 3.9% to GBP334.3m and by 3% to GBP342.6m respectively.
"We have out-performed the soft drinks market across all key categories, with a strong performance from our brands, despite difficult trading conditions in the second half of the year," said Britvic's chief executive, Paul Moody. "The conditions in the soft drink market continued to be challenging at the beginning of our new financial year, reflecting the normal residual impact of a poor summer. However, the fundamentals of the market remain strong and the market has shown modest growth in recent weeks."
In May, Britvic acquired the soft drinks and distribution business of C&C Group in the Republic of Ireland and Northern Ireland for EUR249.2m (US$337.5m). Among the brands sold in the deal are Ballygowan water, Cidona, MiWadi, and Energise Sport. Britvic also took control of the rights to Pepsi and 7Up brands in the countries.
"We remain confident that we are well positioned for the year ahead, building on the recent acquisition of Britvic Ireland, further cost saving opportunities and a continued focus on the innovation pipeline," Moody concluded.
The company's board has proposed a final dividend per share of GBP0.077, bringing the full year dividend per share to GBP0.11.
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