Britvic (BVIC) has reported first quarter revenue of £351m, an increase of 4.3% on the previous year, driven by increased UK sales of carbonated drinks as its still drinks struggled.
The “strong” start to the year in the 12 weeks to 25 December 2016 was underpinned by overall volume growth of 3.9%.
Its GB region reported a 2.2% increase in revenue on the previous year, driven by its focus on the convenience and foodservice channels, including Subway.
GB carbonates “continued its outperformance of the market” with a revenue increase of 5.5%. Pepsi Max and 7UP were both in strong growth, as was R Whites, benefiting from its relaunch last year.
GB Stills revenue declined by 3.8%, with sales of Robinsons and Fruit Shoot continuing to decline “reflecting the challenging categories in which they operate”.
Its international division posted a 19.8% leap in sales, compared to a 13.8% decline in the first quarter last year. The growth was driven by a 14.1% jump in volumes, primarily from Fruit Shoot in the US.
France revenue increased 6.3% and Ireland revenue increased 6.4%.
CEO Simon Litherland commented: “The new financial year has started well with group revenue 4.3% ahead of last year, continuing the good progress we made as a business in the prior year. Encouragingly all our key markets have delivered revenue growth.
“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.”
Britvic shares jumped 5.9% in trading today to 623.5p - the shares are now 10% up year-to-date but have fallen 13.6% year-on-year amid concerns about the impact of the UK sugar tax.
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