UK: Britvic expands Fruit Shoot footprint as FY profits rise
- FY net profits (after exceptional items) up 7.8% to GBP61.9m (US$100m)
- Net sales up 5% to GBP1.32bn
- Operating profits up 1% to $109m
- Expands Fruit Shoot to 41 US states
Britvic will up US Fruit Shoot distribution to 42 states
Net profits after exceptionals and other items were up 7.8% to GBP61.9m (US$100m) in the 12 months to 29 September, the company said today (26 November). Sales increased 5% to GBP1.32bn over the same period, while operating profits after exceptionals were up 1% to GBP109m.
Pre-tax exceptionals cost the company GBP25.5m, with around GBP10m stemming from Britvic's aborted merger with AG Barr, the company said. Factory closures related to Britvic's new cost-cutting strategy, announced in the wake of its failed merger, cost the company around GBP13m.
Britvic, meanwhile, revealed it is to up its US Fruit Shoot distribution through PepsiCo unit PepsiCo Americas Beverages to 41 states, up from the current 30. The deal is a widening of Britvic's plans to franchise Fruit Shoot concentrate in the US, that an analyst last year said could be "transformational" for the company.
Britvic's CEO, Simon Litherland, said: “Today’s announcement of a new agreement with PepsiCo Americas Beverages for significant additional expansion in the US is further evidence of the growth opportunities that exist for our brands internationally.”
Looking ahead, Litherland said 2014 is likely to remain “challenging” for the company, but that the company can deliver EBIT in the GBP148m-156m range, up from this year's GBP135m.
The results were an improvement on last year, when profits and sales dipped because of a recall of the Fruit Shoot brand that cost the company an estimated GBP20m. Today, Britvic said Fruit Shoot's market share in the UK is “back at pre-recall levels and ahead internationally”.
Britvic's share price was up around 4% in morning trading in London.
To read the company's official statement, click here.
This article has been amended. It originally said Fruit Shoot will be distributed in 42 states instead of 41.
Britvic plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report
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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...
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