Sunday 18 August 2019

Britvic Ireland profits up after sugar tax imposed

Britvic CEO Simon Litherland
Britvic CEO Simon Litherland
Ellie Donnelly

Ellie Donnelly

Reported revenue in the Irish arm of drinks group Britvic declined in the 28 weeks to 14 April.

This was due to a weakness is its wholesale division.

Following the introduction of the sugar tax in Ireland, the group initially saw strong market growth in low and no-sugar variants, though this has now stabilised, Britvic said in a trading update.

Overall, organic revenue at the group increased 1.9pc to £769.2m (€876.5m).

Meanwhile, organic adjusted earnings before interest and tax increased by 5pc to £83.7m (€95m). The group's profit after tax for the 28-week period was up 4.8pc to £34.9m (€39.7m).

Britvic said the soft drinks levy in the UK had accelerated consumer trend towards its low/no sugar portfolio.

Britvic CEO Simon Litherland said: "I am pleased to report that we have delivered another strong performance in the first half of the year." He added that the soft drinks levy had "benefited" the company's portfolio.

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