Boost for Tango maker Britvic as warm weather heats sales
Robinsons and J2O maker Britvic has seen bumper sales in its fourth quarter, with sales up 12.8 per cent at £366.4m and gains in all markets for the full year to 29 September. Revenue growth was 4.4 per cent to £1,321.9m. (Release)
Good weather in July and the availability, compared to last year, of its well-known Fruit Shoot, saw volume and pricing growth in the UK, France and internationally. Fruit Shoot was recalled in early July of 2012, but has returned to pre-call levels in this last quarter. UK market revenue was up 13.8 per cent.
Chief executive Simon Litherland, in addition to highlighting the company's good performance for the quarter, said: "we expect that our operating profit will be slightly above our previous guidance. In each of our markets the consumer environment is challenging as disposable incomes remain under pressure and consumers continue to seek value."
Investment bank Numis has upped its guidance on Britvic on its strong performance.
Britvic's warm-weather success comes after it poured cold water on the proposed merger with competitor AG Barr in July, which stemmed from an original all-share merger agreement back in November 2012. The Irn-Bru maker had to face some £4.9m in legal costs relating to the failed deal when Britvic walked away from it.
Numis adds that shares have performed very strongly since the appointment of Litherland as chief executive in February. Britvic will announce its Preliminary results on 26 November.