UK: Britvic optimistic after improved second half

Most popular

Pernod Ricard Performance Trends 2015-2019

Diageo Performance Trends 2015-2019 - data

Major spirits brands dodge the US tariff bullet

Has soft drinks missed premiumisation train?

Where should wine focus its on-premise efforts?


UK drinks group Britvic has unveiled a fall in full-year earnings and revenues as the move away from carbonates by consumers continues to take its toll. However, the management did draw attention to an improved second half profit performance.

The company said today (30 November) that total branded revenues reached GBP677.7m (US$1.3bn) for the year, a 2.6% fall over 2005. Carbonate revenues fell 6.8% to GBP332.5m, though this was offset in part by a 2.4% rise in still drink revenues to GBP321.7m.

Operating profit was largely flat, rising 0.5% to GBP73.7m. However, basic earnings per share fell 0.5% to 18.4p.

Operating profit rose 8.9% in the second half. The company said a focus on controlling costs resulted in the delivery of GBP13m of sustainable cost savings, including GBP11m of overhead savings.

The company added that successful innovation in the second half had focused on the growth areas of the market.

Branded revenue was broadly level in the second half after the decline in the first half. Stills revenue was up 5.6% in the second half, driven by new water brand launches and a solid performance from the key categories of adult, juice drinks and squash.

Meanwhile carbonates revenue fell only 4.7% in the second half, compared to a 9% fall in H1.

Paul Moody, Britvic CEO, said: "In the second half of our financial year we have achieved a marked improvement in our volume and revenue performance. We have maintained a sharp focus on ARP, cost savings, and cash management against the backdrop of a difficult carbonates market and continued growth in the stills market.

"The improved revenue trends seen in the second half have continued into the new financial year and have driven the group's trading performance over these early weeks. However given the volatility in the carbonates market we remain cautious on the outlook for this category. We are confident that in the year ahead we will continue to make progress on margins."

Looking forward, Moody added: "Britvic is well placed to benefit from the continuing consumer trend towards health and well-being and our new brand and product innovations, scheduled for launch in the first half of calendar 2007, remain focused on the growing stills category."

Sectors: Soft drinks, Water

Related Content

Britvic FY fiscal-2017 by region - results data

Britvic FY fiscal-2017 by region - results data...

How did Britvic perform in H1 2019? - Results

How did Britvic perform in H1 2019? - Results...

Britvic FY 2015/16 results by region - Focus

Britvic FY 2015/16 results by region - Focus...

Shift in UK market puts Britvic's FY fiscal-2017 sales on the up - results

Shift in UK market puts Britvic's FY fiscal-2017 sales on the up - results...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..

Forgot your password?