Wednesday 24 October 2018

Revenue increases but profit down due to business capability programme costs at Britvic

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Ellie Donnelly

Ellie Donnelly

Revenue at drinks group Britvic increased 4.5pc year-on-year to £733m in the 28 weeks to April 15.

Growth in organic revenue was up 2.8pc during the period, according to a trading updated from the group.

During the six month period adjusted earnings before interest and taxation increased 9.4pc to £80.5m, with organic adjusted earnings before interest and taxation up 6pc.

However, profit after tax at the maker of MiWadi decreased 13.7pc to £33.3m, part of which was due to a £21.6m spend on the company’s planned business capability programme.

Adjusted earnings per share increased 12.2pc to 21.2p and the interim dividend at the company increased 9.7pc.

"We have delivered a strong first half performance with solid revenue, margin and earnings growth," Simon Litherland, CEO of Britvic, said.

“We have also made good progress in innovating to meet consumer needs, growing our international presence and transforming our supply chain. While it is too soon to guide on the ongoing consumer impact of the soft drinks levy, early indications of the competitor and customer response are broadly as we anticipated. I remain confident of continuing to make progress this year."

In Ireland revenue increased 13.1pc to £86.6m.

The company said that the growth in Ireland was driven by the performance of the company’s low and no sugar brands, including MiWadi, Pepsi MAX and Ballygowan.

"The first half has seen continued Britvic success in Ireland, with revenue and share growth in our owned-brand portfolio and continued expansion of the Counterpoint wholesale business," the company said.

On the matter of the sugar tax in Ireland, the company noted that its introduction falls outside the period being reported.

Meanwhile a reversal of impairment in the Ballygowan trademark of £9.2m offset an impairment in the Britvic brand in Ireland of £2.2m and an impairment in the Fruite brand in France of £4.4m.

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