Interim Management Statement

RNS Number : 5974V

Britvic plc

14 July 2009

 



Britvic plc ('Britvic') Interim Management Statement 

14th July 2009

In the light of particularly strong trading throughout the third and into the fourth quarter, Britvic today reports Q3 trading numbers, ahead of our scheduled update of 23rd July 2009. Total revenues of £249.1m for the 12 weeks to 5th July 2009 ('the quarter') represent an increase of 5.9% on the prior year. For the full 40 weeks to 5th July 2009, total revenue increased by 6.1% to £732.3m. GB and International revenues in the quarter grew by 11.6% to £209.4m, reflecting GB stills growth of 8.3%, GB carbonates growth of 14.4% and International growth of 17.5%. 

Britvic Ireland volumes for the quarter to 30th June 2009 were down 20.2% with euro revenues down 24.3%. Sterling-based Irish revenues were down by 16.8% in the same period.

		% change on last year
		Q3	Year to Date
Volume
	GB Carbs	10.4	8.5
	GB Stills	3.0	4.9
	International	11.7	3.6
	Ireland	(20.2)	(9.6)
	GROUP	3.9	4.7
ARP
	GB Carbs	3.6	3.0
	GB Stills	5.2	0.7
	International	5.3	10.6
	Ireland (€)	(5.5)	(5.8)
	GROUP (£)	3.3	2.5
Revenue
	GB Carbs	14.4	11.6
	GB Stills	8.3	5.7
	International	17.5	14.6
	Ireland (€)	(24.3)	(17.0)
	GROUP (£)	5.9	6.1

GB Carbonates

In GB carbonates, Britvic again materially outperformed the market with volume growth in the quarter of 10.4% against a take-home carbonates market up by 1.5%. Effective through-the-line execution of great brand equity programmes, together with continued focus on revenue management has led to strong growth in volumes and ARP in the third quarter.

GB Stills

Continued outperformance was also seen in GB Stills, with volumes in the quarter up 3.0% against a market down 2.7%, whilst ARP growth has accelerated through the third quarter as a consequence of product mix and revenue management. Britvic's strong brand presence in the better-performing stills categories, notably Robinson's squash and Fruit Shoot has led the volume growth. Juicy Drench has had a particularly encouraging launch, with excellent store distribution, household penetration and rate of sale.

Britvic International

Our International division delivered volume growth of 11.7% in the quarter. The continued growth of Fruit Shoot in the Netherlands and Robinsons squash in Scandinavia has offset the effect of the decline in euro-flight passenger numbers, and this overall positive mix has led to strong growth in both ARP and revenue.

Ireland

Following an encouraging performance in April, the trading environment in May and June has been particularly challenging. In the 12 weeks to the 14th June 2009, the ROI grocery soft drinks market is down 8.1%. The Convenience and Licensed On-Premise markets continue to be severely impacted by the recession, and the performance of these channels has contributed to Britvic Ireland's volume decline of over 20% in the period to end of June.  Our synergy programme remains on track to deliver the previously announced total of €27m by 2011.

GB Soft Drinks Market

In the 12 weeks to 27th June 2009 the GB take-home soft drinks market has shown signs of improvement. The previous reported volume decline of 3.0% over our first half has softened to a decline of 0.7% in the latest 12 weeks, with the latest 4-week period showing growth of 3.2%.

The latest Licensed On-Premise soft drinks market experienced a volume decline of 3.1% for the three months to the end of March 2009, although March itself saw a growth of 2.3%.

Financial Position

There has been no material change in Britvic's financial position since the half-year end.

Paul Moody, Chief Executive commented:

'Britvic has continued to outperform the market in the latest quarter. Our powerful brand portfolio has again driven both volume and revenue growth. Whilst Ireland continues to be a very challenging environment with no signs of improvement in the macro-economic conditions affecting the soft drinks market, our GB/International business in contrast continues to perform very strongly. As a result, the Board now anticipate the full-year outcome is likely to be ahead of the peak of current market expectations.'

For further information please contact:

Investors:
Craig Marks/Steve Nightingale	[phone]
Media:
Tom Buchanan/Giles Croot (Brunswick)	[phone]
Emma Peacock/Susan Turner	[phone]

Notes to editors

Britvic is one of the two leading branded soft drinks businesses in the UK and the Republic of Ireland. The Company is the largest supplier of still soft drinks in Great Britain, the faster growing category in the soft drinks market, and the number two supplier of carbonates.

Britvic's broad portfolio of leading brands includes established names with high brand recognition such as Robinsons, Tango, J20 and Fruit Shoot. Included within the portfolio are the Pepsi and 7UP brands, which Britvic produces, markets, sells and distributes under its exclusive appointment from PepsiCo which runs until December 2023 in Great Britain and 2019 in Ireland. This brand and product portfolio enables Britvic to target and satisfy a wide range of consumer demands in all major soft drinks categories, via all available routes to market. 

Cautionary note regarding forward-looking statements

This announcement includes statements that are forward-looking in nature. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by the Listing Rules and applicable law, Britvic undertakes no obligation to update or change any forward-looking statements to reflect events occurring after the date such statements are published.

Reporting Periods

Britvic Ireland reports on a monthly basis in comparison to the rest of the Britvic group of companies which report on thirteen 4-week periods. There are no immediate plans to change this reporting structure. Please note that Britvic Ireland's volumes and ARP performance exclude the sale of 3rd party factored brands.

Market Data

Take-home market data referred to in this announcement is supplied by AC Nielsen and runs to 27th June 2009.

 

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