just the Facts - Britvic's Q3
Britvic remains confident of meeting market expectations for its full financial year
Britvic this morning (23 July) recorded an increase in third-quarter sales and said it remains confident of meeting market expectations for its full financial year.
Here, we take a closer look at the figures.
- In the UK take-home soft drinks market, Britvic recorded its fourth consecutive quarter of growth. For the 12 weeks to 3 July, the firm posted year-on-year increases of 2.5% in volumes and 6.3% in value. Britvic also delivered market value growth in the overall single-serve on-the-go market, which it said was “in excess” of the 8.9% value increase seen by the on-the-go soft drinks market in the quarter.
- In the UK CSD market, the firm experienced an increase of 13.8% in volumes and 13.2% in value, driven by marketing initiatives, including the football-based Pepsi Dream Team campaign. The programme drove “significant additional volume and value share gain” in the quarter for the Pepsi brand, Britvic said. The UK launch of Mountain Dew Energy and 600ml packs also performed strongly, both in distribution and rate of sale.
- Volumes in Britvic UK's stills portfolio declined by 0.7% in the quarter. This, the company said, reflected a challenging quarter for its single-serve still products in licensed on-premise, where food-led outlets showed little benefit from FIFA World Cup activity. Despite this, Britvic said year-to-date UK stills revenue remains in positive territory, up by 3%, and that its recent innovation launches are trading in line with expectations.
- Britvic Ireland saw volumes increase 15%, while sales were up by 13.1% in the quarter. However, the Irish soft drinks market remains volatile, according to the firm, with value declining in the Republic of Ireland (ROI) grocery soft-drinks market by 2.9% in the quarter, and by 11.3% in the ROI licensed on-trade market. “This, together with a relatively soft comparable quarter last year, means that we remain cautious that the latest performance is not indicative of a sustained turnaround in the soft drinks market,” Britvic said.
- In the firm’s international markets, volumes rose 18.6% and sales 13.4%. This was driven by additional distribution gains and further account wins, despite a fall in Average Realised Price (ARP) largely due to the strong growth of Drench water within the travel business.
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