Britvic first quarter revenue rises, reiterates 2016 guidance

In a trading update for the 12 weeks to 20 December, the company said reported revenue rose 4.8% from the previous year to £311.6m. On an organic basis, however, revenue declined 2.4% to £290m.

Chief executive Simon Litherland said: "As anticipated, our first quarter performance reflected both the prevailing challenging trading conditions and a slow start in October.

"However trading over the entire Christmas period in our core markets was encouraging, with revenue ahead of last year, and in the quarter, we grew or held market value share in each of these markets.”

Revenue from Great Britain was down 1.2% over the period, with average realised prices flat on the previous year and volume slightly weaker. The company said this reflected the continued tough trading conditions in the grocery channel which affected both its carbonates and stills portfolios.

In France, revenue slid 5.5%, with volume up 0.8% and average realised prices down 6.2%.

Meanwhile, in Ireland, revenue rose 1%, with a strong performance by Britvic’s wholesale division, Counterpoint, partially offset by a weaker carbonates performance.

Comparable international revenue fell 5.5%, mostly due to lower margin private label sales.

Britvic reaffirmed its earnings before interest, taxes, and amortisation range of £180m to £190m for 2016.

Shore Capital said: “Although the organic growth on an underlying basis is slight below our expectations we believe it is a solid statement overall and the reiteration of profit guidance is reassuring.

“Looking ahead, we continue to believe Britvic is well-positioned to deliver growth for the year as a whole.”

At 1000 GMT, Britvic shares were 3% higher at 698p.