Britvic shares rise despite falling sales
Published 24/01/2013 | 05:00
SHARES in Britvic rose marginally, as the company outpaced the wider Irish market even as sales continued to fall.
In an interim management statement covering the last three months of 2012, the drinks company said its revenue from here fell 2.8pc.
Britvic, which counts Ballygowan water among its brands, said the weak performance was due to "the third-party products that we distribute in our licensed wholesale business".
Britvic distributes Pepsi and several other brands in Ireland.
"Our own brands outperformed a weak market, and we grew our own brand revenues with our average retail price up 7.6pc against a volume decrease of 2.4pc," the firm said.
Despite the weaker sales, Britvic's performance was better than the wider market. According to data firm Neilsen, the take-home soft drinks market declined by 7.6pc in volume and 5pc in value during the last quarter, with impulse performing substantially worse.
Overall, Britvic saw revenue increase during the quarter – the first of Britvic's fiscal year – by 4.8pc to £303m (€360m).
Growth was driven by the UK, where revenue rose 5.4pc.
The company also said it would speed up the distribution of its "Fruit Shoot" soft drinks in the US.
Company chief executive Paul Moody said his company had a "much improved" performance.
"In GB, we have delivered strong carbonates revenue and market share growth, while the performance in France and Ireland has been encouraging.
"The second quarter has started more slowly, reflecting the continuing challenging economic and trading environment. However, overall we are confident that the business is well positioned to meet these challenges," he added.
Britvic closed up 0.4pc in London.