Business World

Saturday 24 August 2019

Revenue at Britvic Ireland up 14pc

Britvic (stock)
Britvic (stock)
Ellie Donnelly

Ellie Donnelly

Revenue at Britvic Ireland increased 14.1pc to £164.7m (€189m) in the twelve months to 1 October, according to the latest results from the company.

The performance was led by brand growth by the stills portfolio, particularly Ballygowan and MiWadi.

Growth was also recorded in the group’s Counterpoint wholesale business, which benefited from an improved offering across its alcohol and snacks range, as well as additional business in Dublin following the successful completion of the acquisition of East Coast earlier in the year.

However the brand contribution margin decreased slightly to 34.4pc from 35.8pc in the previous year due to increasing costs and substantial growth in the sale of third-party brands in the wholesale business, which only generate a distribution margin.

Looking beyond Ireland, the group’s overall performance saw revenue increase 7.7pc to £1.5bn, with organic revenue increasing by 2.5pc year-on-year.

Adjusted earnings before interest, taxation, and amortisation increased 5.1pc to £195.5m, however the company’s profit after tax was down 2.5pc to £111.6m.

Profit was impacted by £24.7m in planned costs related to the company’s capability programme.

Adjusted earnings per share at the company increased 7.3pc to 52.9p, resulting in a full year dividend increase of 8.2pc.

"We have grown both organic revenue and margins whilst continuing to progress our strategic priorities. I am particularly encouraged that we have increased the proportion of revenue generated from innovation and accelerated the returns from the business capability programme," Simon Litherland, CEO of Britvic, said.

Mr Litherland went on to say that the company was "well placed" to deal with the uncertainty of the soft drinks industry levy, which is being introduction in April 2018.

"This, combined with our continued focus on revenue and cost management, means we remain confident of making further progress next year," Mr Litherland said.

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