Britvic posts Q1 revenue growth, confident over full year

Britvic said it was confident of meeting market expectations for the full year as it reported growth in first-quarter revenue.

Revenue in the first quarter was up 4.3% on the prior year to £351m, underpinned by volume growth of 3.9%, with revenue growth in all of the company’s key markets.

Chief executive Simon Litherland said: "Whilst the external environment remains uncertain, we are confident that the strong execution of our marketing and innovation plans combined with disciplined revenue management and our cost saving initiatives will deliver full year results in line with market expectations."

GB saw a 2.2% increase in revenue on the previous year and Britvic said that while the grocery channel remained subdued, it delivered growth from its focus on the convenience and food service channels, including Subway.

GB carbonates continued its outperformance of the market, with revenue up 5.5%. Pepsi Max and 7UP both showed strong growth, along with R Whites, which benefited from its relaunch last year.

In GB Stills, revenue fell 3.8%, with both Robinsons and Fruit Shoot continuing to decline. However, both brands showed signs of an improving trend. Meanwhile, J20 grew with a strong Christmas performance led by the Spritz and Glitter Berry variants.

In France, revenue was up 6.3%, with the branded portfolio in strong growth, led by Fruit Shoot and Pressade, whilst lower margin private label revenue continued to decline.

In Ireland, revenue was up 6.4%, while the international division reported a 19.8% increase in revenue, compared to a 13.8% decline in the first quarter of last year. This was largely as a result of a 14.1% increase in volume. The majority of the growth came from Fruit Shoot in the USA and revenue also increased in the export markets including Benelux.

The group said it continues to make good progress with the implementation of its three-year business capability programme. The new PET line in Leeds is fully operational, three new can lines in Rugby are being commissioned and the continued focus on cost control will deliver an additional £5m benefit this year.

Britvic said the acquisition of Bela Ischia remains on-track to complete by the end of March and will deliver “significant” cost synergies and will further strengthen the company’s platform in Brazil.