UK: Britvic toasts strong H1
Britvic has posted a lift in first-half profits, thanks to strong performances from both CSDs and still drinks.
The UK-based company said today (21 May) that operating profit for the 28 weeks to 15 April increased by 30.1% year-on-year, hitting GBP24.2m (US$47.7m). Total sales for the period were up 9.3% to GBP353.6m.
While revenue from still drinks was up 8.5% to GBP166.8m, CSD sales also outperformed the market, Britvic said, rising 9.6% to GBP175.2m.
While Fruit Shoot H2O further strengthened its position as the number one children's water brand, the stills category also benefited from continuing growth in Robinsons squash and J2O's recently-launched PET pack. In CSDs, Britvic boasted of the strength of the Pepsi brand proposition, "which continues to deliver further market share gains despite an increasingly competitive sector".
Paul Moody, Britvic's CEO, said: "We have continued to build market share in stills and carbonates and look forward to a second half where we will benefit from several new innovative product launches, such as Robinsons Smooth Juice and Fruit Shoot 100% Juice.
"The encouraging trading trends seen over the period have continued through the early weeks of the second half and as a result, we remain confident with regard to the full year outcome. However, as we enter this more important and typically more volatile period, the soft drinks market as a whole will face much stronger comparatives."
Britvic acquired the the soft drinks and distribution businesses of C&C Group in Ireland and Northern Ireland last week, with Moody noting that this provided "a great opportunity to accelerate earnings growth.
"This important acquisition for Britvic allows us to grow the business both within the UK and by selective international expansion," Moody concluded.
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