Britvic rallies on profits hope
Drinks group Britvic today promised annual profits towards the top end of expectations after seeing an improvement in trading over the summer.
Shares in the Tango-to-Robinsons group achieved strong gains as investors welcomed signs of a recovery after profit warnings earlier this year.
As part of the Chelmsford-based group’s fightback, it has launched a number of new products – Drench, Pennine Spring and Fruit Shoot H2O – in the first half of this year in a bid to tap into the fast-growing water market.
In the 20 weeks to September 3, Britvic said revenues grew 0.4% on a year earlier, helped by growth of 7.5% in still drinks. Carbonated revenues were down 5.8%, but this represented an improvement on earlier in 2006 when sales were impacted by increased consumer demand for healthier products.
Britvic said the carbonates recovery was aided by a hot July, the favourable impact of the World Cup and a high level of promotional activity.
In still drinks, Britvic said the sales surge reflected the launch of new products. However, it pointed out it still did not have any presence in the pure juice sector, which continues to lead the market.
