UK: Britvic's recall troubles combine with weather to dampen Q3
- Group revenue drops 5.1% in three months to 8 July compared to year earlier
- Great Britain revenue down 6.9% over same period, due partly to bad weather
- Volumes drop in all markets over same period and down 6.6% overall
- Results factor in Fruit Shoot product recalls
Britvic has had a difficult Q3
Britvic has posted a gloomy set of Q3 figures after weather woes and a product recall.
Sales in the three months to 8 July fell by 5.1% year-on-year to GBP300.1m (US$470.8m), the UK-based soft drinks company said in an interim statement today (19 July). Volumes in all regions fell, with Ireland posting a 7.6 slide.
“The third-quarter has been extremely challenging for Britvic,” said Britvic CEO Paul Moody. “The weak consumer environment and very disappointing weather at a key time for soft drink sales have had a marked impact on our performance.”
A recall earlier this month because of problems with Fruit Shoot branded bottle caps depressed revenue growth by about 2%, the company said. Effects of the recall showed in Britvic's stills revenue in Britain, which plunged 13.3%, and impacted exports, especially in the Netherlands and Belgium.
Very bad weather in core UK and Irish markets also hurt Q3 performance, Britvic said.
France was one of Britvic's few bright spots, posting 4.6% revenue growth. Franchising efforts were also progressing in the US, which was unaffected by the recall and showing strong growth, the company said.
Britvic will now focus on re-establishing Fruit Shoot in the market as soon as possible, Moody added.
To read Britvic's Q3 results, click here.
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