UK: Britvic to launch Fruit Shoot in India as H1 profits jump
- H1 net profits up by 32% to GBP24.7m (US$37.3m)
- Net sales slip by 0.3% to GBP639.2m
- Operating profits climb by 15.7%, hitting GBP32.8m
- Plans to close two factories and a warehouse
Britvic is to close two of its factories and a warehouse
Britvic has today (22 May) unveiled plans to launch its Fruit Shoot juice brand in India as it reported a healthy surge in first-half profits.
Net profits rose by 32% to GBP24.7m (US$37.3m) in the 28 weeks to 14 April, the company said. Net sales stayed flat at GBP639.2m over the same period, while operating profits climbed by 15.7% to GBP32.8m.
The group, whose plans to merge with AG Barr were halted by a competition probe in February, said it has signed a deal with India's Narang Group to distribute Fruit Shoot in the country starting in the middle of next year.
The deal comes just under a year since the company lost an estimated GBP25m in a recall of Fruit Shoot caused by a faulty cap design.
However, since then Britvic has returned the brand to UK shelves and struck a deal with PepsiCo to launch in the US.
Today, Britvic said it has increased Fruit Shoot's footprint in the US to 32 states after agreeing with Pepsi Cola Bottling Company of Pittsburgh to distribute the brand in Kansas and Missouri.
The company also said today it plans to join its UK and Ireland units and close two factories and one warehouse in the UK as part of a strategy that aims to save GBP30m a year by 2016.
“Today we have announced a new strategy which will lead to a step change in performance and improved returns for shareholders,” said Britvic chief executive Simon Litherland, who replaced Paul Moody in February. “We intend to change our operating model to generate stronger performance in our core markets and accelerate the increasingly attractive international opportunities.”
Litherland said that despite the jump in profits, Britvic's H1 market conditions “remained challenging” and the company posted volumes decreases in all of its regions. Looking ahead, Litherland said Britvic has increased its marketing investment for the second half of the year.
In morning trading, Britvic's share price surged, up by 9% at 10am.
To read the company's official statement, click here.
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...
The final death count of Typhoon Haiyan, which hit the Philippines last week, is still a long way from being known. The relief effort is well underway, however, and drinks companies are among those th...
In 2012, Cía de Bebidas Pepsico continued to adapt to the gloomy economic climate by holding back prices, offering its core carbonates brands at lower retail prices than its main competitor Cía Servic...
PepsiCo India is one of the largest players in packaged foods and soft drinks in India. The holding became the new title sponsor of the Indian Premier League (IPL) for five seasons starting from 2013....
- Will Tequila Learn from Scotch Whisky's Mistakes?
- Comment - Beer - Does 'Craft' Work?
- Solving the diet drinks dilemma in the US
- Comment - How to Target Cognac's Mok Generation?
- SABMiller, Meantime Brewing say goodbye to 'craft'
- Whyte & Mackay takes on Flor de Caña in UK
- Diageo opens Johnnie Walker House in Singapore
- Emperador overhauls Whyte & Mackay labels
- SPI Group US, Canada sales chief departs
- Soaring Prosecco sales good for Champagne
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Beam Suntory Inc. - Strategy and SWOT Report