Britvic given permission to buy C&C's Ballygowan division
Soft drinks firm Britvic today said annual results were likely to hit forecasts, despite the poor summer weather.
The group, which makes Tango and Robinsons squash, said its resilient performance reflected efficient use of promotions and a focus on costs.
Britvic added it was already in a strong position following healthy half-year results, when profits for the six months to April 15 came in at £10.3m (€15.2m), compared to a loss of £5.3m (€7.8m) in the same period last year.
The group, which distributes Pepsi and 7Up under licence, has also won approval from the Irish Competition Authority to buy C&C's soft drinks division, which makes Ballygowan mineral water. The deal is expected to complete at the end of the month.
Greg Feehely, an analyst at Altium Securities, said the remaining six weeks of the financial year may still prove crucial in estimates being met.
He is also concerned that tougher comparatives with a year earlier will impact the first half of the following financial period.
Mr Feehely said: “Not only will this period be set against tough comparatives, but could be characterised as a period of intense promotional activity following higher than anticipated stock levels after the summer months.”
However, he pointed out that the addition of the Ballygowan business could bring greater than expected benefits, while higher volumes of pub food following the UK-wide smoking ban may work in the favour of soft drinks firms.
Altium is looking for adjusted pre-tax profits of £58.6 million for the current financial year, followed by £67.4m (€99m) the year after. The company posted equivalent profits of £55.7m (€82m) last year.
Britvic has been on the recovery trail after overcoming a sudden collapse in the fizzy drinks market last year.
The group boosted its portfolio of still drinks, but has also seen consumers turn to no-added sugar varieties of fizzy drinks.
