News

UK: Britvic shares slide on costs warning

Most popular

What will be Ian Curle's Edrington legacy?

'Healthy alcohol - the trend to watch in 2019?

The beer category in 2019 - just-drinks predicts

Is craft spirits approaching a reset moment?

MORE

Britvic's share price has slumped by 10% after it warned that higher-than-expected input costs will hit profits in its current fiscal year.

//i2.aroq.com/1/britvic_0.jpg

Unprecedented rises in the price of key raw materials, such as PET plastics and sugar, have prompted Britvic to double its projected increase in input costs, the soft drinks producer said today (24 February).

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. That compares to guidance issued only one month ago of a 5% to 6% increase.

The Robinsons and Tango maker saw its share price slide by 10% in early trading on the London stock exchange as analysts warned that profits will be hit. Evolution Securities said that full-year profits could be between 10% and 15% lower than the current analyst consenus forecast.

"With management credibility likely to be questioned in the aftermath of this statement and further negative risks to earnings, given the on-going volatility of the oil price in particular, we move to neutral from buy," said Evolution.

Britvic's CEO, Paul Moody, said: "Since our last update to the market we have witnessed a rapid and unprecedented uplift in the cost of key raw materials.

"We do, however, remain confident about the medium to long-term outlook for the business," he added. Britvic still expects full-year operating profits to be ahead of the GBP135m (US$217.4m) reported in its last fiscal year, to 3 October 2010.


Related Content

Vimto sales boost sets Nichols on course for strong 2017 - trading update

Vimto sales boost sets Nichols on course for strong 2017 - trading update...

Britvic FY fiscal-2017 by region - results data

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

Rising costs put heat on Constellation Brands - Q1 Results Analysis

Rising costs put heat on Constellation Brands - Q1 Results Analysis...

Sales flatline for Britvic in Q1 fiscal-2018 - trading update

Sales flatline for Britvic in Q1 fiscal-2018 - trading update...

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?