Trading Statement

RNS Number : 9598F

Britvic plc

16 October 2008

 



16th October 2008

Britvic plc ('Britvic') Trading Update

Britvic today reports a strong trading performance in the 52 weeks to 28th September 2008, with revenue growth of 29.3% to £926.5m compared with the same period last year, including a full 52-week contribution from Britvic Ireland of £200.7m for the 12 months to 30th September 2008. GB & International revenues of £725.8m represent growth of 4.8% in the 52-week period, driven by GB stills revenue growth of 4.8% and GB carbonates revenue growth of 4.1%. 

Revenue for the 12 weeks to 28th September 2008, the period since the last update to the market, was up 27.7% on the same period last year reflecting revenue growth in both GB stills, up 6.4%, and GB carbonates up 9.3%. Once again, this result demonstrates a resilient top-line performance set against the backdrop of the downturn in consumer spending seen since early spring, the continued challenges in the licensed on-premise market and the impact of another poor summer. Britvic's strong top-line performance was predominately driven by a strong innovation programme, the continued focus on in-store feature and display execution along with increased advertising and promotional effectiveness.

In the GB stills market, Britvic continued its outperformance of the market with volume growth of 8.1% in the 52-week period, against a market volume decline of 2.7%. Britvic's GB stills ARP has declined predominantly due to channel mix. Fruit Shoot and Robinsons squash continued to grow volume and value share and the launches of Gatorade and Drench have fully delivered against high expectations. The overall market decline was driven by economic pressures impacting high retail value categories and continued challenges to the plain water category. 

In GB carbonates, Britvic has continued to outperform the market with volumes up 4.3% in the 52-week period against market volume growth of 1.4%, driven by further market volume and value share gains by Pepsi and 7UP. 

Britvic Ireland's revenue grew 6.2% in sterling terms for the 12-month period, benefiting from exchange rate movements, with underlying total euro revenues down by 6.4%. Macro economic conditions in Ireland have resulted in very difficult trading conditions. This has recently led to a low double-digit decline in the Licensed On-Premise market in the 12-month period, though the Take-Home market has stabilized to a flat volume performance. Britvic Ireland's branded volume decline has been restricted to 3.4% with our strong brand portfolio enabling the growth of share in a number of key categories, including a very strong performance from the combined portfolio of the MiWaDi and Robinsons squash brands. 

Paul Moody, Chief Executive commented:

'We have delivered a strong performance despite the disappointing weather, rising raw material and energy costs and the challenging market conditions. The business has achieved good revenue growth, increased market volume and value share with tight cost control helping to deliver our target of increasing GB & International operating profit margin by at least 10-15 basis points. Consequently, we expect to deliver earnings for the year in line with expectations.'

The Company's next update to the market will be with its Preliminary Results for the 52 weeks to 28th September 2008 on 26th November 2008.

  For further information please contact:

Investors:
Craig Marks/John Gibney	[phone]
Media:
Tom Buchanan/Giles Croot (Brunswick)	[phone]
Emma Peacock	[phone]

There will be a conference call today at 9.30am for investors and analysts with Paul Moody (Chief Executive) and John Gibney (Finance Director) and a further conference call at 2.30pm (9.30am Eastern Standard Time) today primarily for US investors and analysts. There will be an opportunity on both calls to ask questions. 

	Access Number:	Pin Number:
9.30am call	[phone]	566466#
2.30pm call	[phone]	566466#

A recording of both calls will be available for seven days.

	Redial Number:	Conference Reference:
9.30am call	[phone]	235647#
2.30pm call	[phone]	233014#

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 branded still soft drinks in Great Britain and the number two supplier of branded carbonates.

Britvic's broad portfolio of leading brands includes established names with high brand recognition such as Robinsons, Fruit Shoot, J20 and Tango in Great Britain, together with Ballygowan and Club in Ireland. Included within the portfolio are the Pepsi and 7UP brands in Great Britain & Ireland, plus Gatorade and V Water brands in Great Britain, all of which Britvic produces, markets, sells and distributes under exclusive appointments from PepsiCo. 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.

 

END

 

 

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