Ribena maker Lucozade Ribena Suntory (LRS) grew both top and bottom lines last year despite economic headwinds and “unprecedented” inflation.
Sales revenue at the soft drinks supplier grew 4.9% to £542.9m in the year to 31 December 2023, newly filed accounts at Companies House showed. Profit before tax, meanwhile, climbed by £8.4m to £109.2m.
LRS had outperformed on all its key performance metrics apart from gross profit margin – which fell from 49.8% in 2022 to 48.2% in 2023 – said Daniel Lander, finance director at parent company Suntory Beverage & Food (SBF).
Success was down to “a continued focus on our long-term revenue strategy, targeted cost saving and inflation mitigation”, Lander said.
The supplier declined to say how much of its top-line growth had been driven by price, and what had happened to volumes over the reporting period.
Lucozade grew value sales by 9.7% despite volumes sliding by 0.2% last year, according to The Grocer’s Britain’s Biggest Brands Report [NIQ 52 we 31 December 2023]. Ribena sales, meanwhile, were down 0.7% on volumes down 7.7%.
Despite cost of living pressures, there was “an increased appetite from shoppers to buy into the soft drinks category”, Lander said.
LRS’s brand positioning, distribution strategy and “gemba-focused mindset” meant the supplier was able to “continue to meet the needs of our consumers”, he added.
The reporting period covered by the filing pre-dates major supply chain challenges faced by LRS in the first half of 2024.
Industrial action at the supplier’s Coleford factory in Gloucestershire in February, followed by a shutdown in production after the death of a worker at the site in April, led to widespread shortages across Lucozade SKUs in the spring.
Whilst 2024 had been “incredibly difficult”, the challenges faced by LRS “shouldn’t distract from” its achievements last year, Lander insisted.
“Operational efficiency at our manufacturing site in Coleford remains an absolute priority so we can deliver improved service to our customers,” he added.
No comments yet