UK: Goldman Sachs downgrades Britvic shares
Shares in the Robinsons and J20 maker dropped to 393.8 pence this morning
Goldman Sachs has downgraded soft drinks maker Britvic's shares to sell from neutral.
Shares in the Robinsons and J20 maker dropped 0.9% to 393.8 pence (US$0.645) at 09:00am GMT this morning (8 April), following the downgrade. But, the group rallied back to 396.2 pence - up 0.38% for the day by 13:00.
In February, Britvic saw its share price slump by 10% after it warned that higher-than-expected input costs will hit profits in its current fiscal year.
Unprecedented rises in the price of key raw materials, such as PET plastics and sugar, prompted Britvic to double its projected increase in input costs. It said that input costs are set to be between 9% and 11% higher in its current year, which runs to the beginning of October.
Despite this, Britvic has maintained an upbeat outlook at the topline, telling investors only weeks ago that its brands have "very strong" potential for expansion outside of the UK, Ireland and France in the coming year.
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