UK: "Robust" Britvic set for Olympics boost in H2 - analyst
Britvic's H2 numbers should be helped by a bumper programme of activities in the UK this summer
Britvic remains a “robust business model” and will benefit from the UK's summer of high-profile events in its second half, according to an analyst.
The soft drinks firm reported today (24 May) that overall profits in the 28 weeks to 15 April were up 18.3% to GBP18.7m (US$29.4m), helped by its performance in the US. But, the company struggled in the UK, where poor weather affected sales in the period, and particularly Ireland where revenue was down 11.2% year-on-year.
Despite this, analysts Nomura said in a note that it is retaining its full-year EBIT and EPS estimates due to a “better margin outlook”.
“Despite recent poor weather, we see several possible tailwinds including full impact from 2012 pricing, the London Olympics, the European Soccer championships, the Diamond Jubilee celebrations and a weak summer comparative that should have a positive impact on H2,” Nomura said.
The note added that Ireland “remains difficult” for Britivic, however, it highlighted the company is implementing a “multi-year programme of initiatives to reduce costs, which will run into at least late 2013”.
“Medium term we still see a robust business model,” the note said.
Richard Corbett is keen to kick off the end-of-year review season. In this month's column, he looks back at the new product development arena in soft drinks in Europe....
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