Britvic has reported its quarter three trading performance for the twelve weeks to 5 July. Group revenue was £322.3m, an increase of 1.0% on last year. This represents a solid performance in challenging trading conditions, and compared to last year when Q3 reported revenue grew 5.3%(1). The company remains confident of delivering EBIT in the previously stated guidance range of £164m to £173m.
Simon Litherland, Chief Executive Officer, commented:
“I am pleased to see the business back into revenue growth this quarter following the investment we have made in our brands and innovation launches in each of our markets. We have also executed some fantastic marketing campaigns, including Robinsons 80 year association with Wimbledon and the Teisseire sponsorship of the Tour De France.
“Despite continued challenging market conditions, we remain confident of delivering further profitable growth in 2015, in line within our guidance range of £164m to £173m, and we continue to invest behind the long-term drivers of growth.”
Q3 headlines
- Group revenue of £322.3m was up 1.0% on last year, driven by a volume increase of 2.0%
- GB revenue declined 0.8% due to adverse price/mix of 1.2%
- Ireland revenue increased 0.7%, a third successive quarter of revenue growth
- France revenue increased 7.1%, driven by a volume increase of 8.7%
- International revenue increased 6.8%, with USA shipments becoming more closely aligned to in-market sales during the quarter
- Market volume and value share gains in GB, France and Ireland
GB Q3 revenue declined 0.8%. GB carbonates revenue declined 0.9%, primarily due to negative price/mix of 0.8%. This was against a strong performance last year, when Q3 revenue increased by over 10%. Pepsi continued to gain volume and value share in the quarter. GB stills revenue declined 0.7%, an improvement on the 4.2% revenue decline in the first half of the year. Benefited from the recent launches of J20 Spritz, Teisseire and the re-launch of Robinsons.
Ireland Q3 revenue grew 0.7% with a revenue increase on own brands largely offset by a decline in the licensed wholesale business, Counterpoint. Ireland has now delivered three successive quarters of revenue growth. The adverse price/mix in own brand revenue reflects both a competitive carbonates category and the continued growth of the, lower value, plain water category.
France Q3 revenue grew 7.1%, with a volume increase of 8.7%, materially outperforming a declining soft drinks market. The warm weather in June has been particularly beneficial for the syrups portfolio, which grew strongly and gained market share. Fruit Shoot continued to grow and is firmly established as the leading brand in the category.
International Q3 revenue grew 6.8%, following the revenue decline in the first half of the year. Shipments of compound to the USA returned to a level more closely matched to in-market sales during the quarter.