Profits at Britvic have surged as the Pepsi bottler recovers from the Fruit Shoot recall in 2012.
The soft drinks giant reported a 20.8% increase in profit before tax for the half-year to 13 April – boosted by the absence of recall-related costs totalling £8m in the equivalent period last year.
The group also benefited from slower commodity cost inflation and good top line growth. Britvic said sales climbed 4.7% to £670.7m.
Sales of carbonates in GB were particularly strong, growing 6.8% during the period to £284.6m. In France, Britvic also grew strongly with sales up 7% to £127.4m.
Britvic said it had now secured nationwide distribution for Fruit Shoot in the US having signed agreements with bottlers to distribute the drinks in new states including California, Idaho and Wyoming.
“This is another important milestone towards establishing the brand as a leader in the kids’ drinks category,” said Britvic CEO Simon Litherland.
The French business and the rest of the international business have now separated into different business units. Under the leadership of Simon Stewart, Britvic said the international business has a team of 100 people across Europe, the US and Asia.
Of the £30m annualised cost savings promised this time last year, Britvic intends to invest £10m expanding the international business.
Britvic said it was on track to deliver the savings as planned by 2016. Following the closure of its Huddersfield and Chelmsford factories, savings will start to feed through in results for the second half of the year, it said.
Analysts said the results were encouraging. “Pleasingly the company is making good progress in delivering cost savings, reducing net debt and expanding the distribution of its Fruit Shoot business in the USA,” said Britvic analyst Damian McNeela.
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