Britvic plc
29 September 2006
Britvic plc ('Britvic') pre close Trading Update
Britvic today reports improved trading in the 20 weeks to 3 September 2006, with
branded revenue growth of 0.4% compared with the same period last year, driven
by stills growth of 7.5% whilst carbonates were down 5.8%. Branded revenue for
the first 48 weeks of the year compared with the same period last year was down
2.6%, against a first half decline of 5.3%, with stills up 3.0% and carbonates
down 7.5%.
During the 20 week period to 3 September 2006 the total carbonates market has
experienced very marginal growth helped by a hot July, a favourable impact from
the World Cup, significant new product introductions and a high level of
promotional activity.
At the same time as responding to this intense promotional competition, Britvic
has continued to focus on Average Realised Price (ARP) which, as a consequence,
has been essentially maintained versus the same 20 weeks last year. Whilst this
price and promotional strategy, combined with the continuing effect of the
previously announced structural changes in the customer base, has resulted in
some erosion of market share, it has delivered an improved revenue performance
against the first half. In addition it has driven margin improvement against
both the first half and the same period last year.
In stills, Britvic has seen good growth driven by new product launches and a
solid performance in the key categories of adult and juice drinks. Nonetheless,
the total stills market continues to be led by categories such as pure juice
where Britvic has yet to develop a presence, and water where Britvic has only
recently entered the category. The performance of Fruit Shoot H20, Britvic's new
children's water brand, has been strong since its launch in May with its other
water launches, Drench and Pennine Spring performing in line with Management's
expectations.
A higher total ARP combined with the delivery of £10m of the cost savings
programme in FY06 is expected to result in improved margins and profits in the
second half.
Paul Moody, Chief Executive commented:
'We have achieved an improved performance in the 20 week period, particularly
within the important faster growing stills market. Although the trading
environment within carbonates remains competitive, our improved performance
combined with our continued focus on ARP and costs means we anticipate that the
outturn for the year will be towards the top end of the range of current market
expectations.'
The Company's next update to the market will be with its Preliminary Results for
the 52 weeks to 1 October 2006 on 30 November 2006.
For further information please contact:
Investors:
John Gibney/ Jo Guano 01245 504 330
Media:
Tom Buchanan / Conor McClafferty (Brunswick) 0207 404 5959
There will be a conference call today at 9.30am for investors and analysts with
Paul Moody (Chief Executive) and John Gibney (Finance Director) and a further
conference call at 2.30pm (9.30am Eastern Standard Time) today primarily for US
investors and analysts. There will be an opportunity on both calls to ask
questions.
Access Number: Pin Number:
9.30am call UK +44 (0)20 8609 0205 217348#
2.30pm call UK +44 (0)20 8609 0205 995324#
US 1 866 793 4279
A recording of both calls will be available for seven days.
Redial Number: Conference Reference:
9.30am call UK +44 (0)20 8609 0289 153201
US 1 866 676 5865
2.30pm call UK +44 (0)20 8609 0289 153213
US 1 866 676 5865
Notes to editors
Britvic is one of the two leading soft drinks businesses in Great Britain. The
Company is the largest supplier of still soft drinks, the faster growing
category in the soft drinks market, and the number two supplier of carbonates.
Britvic plc's broad portfolio of leading brands includes established names with
high brand recognition such as Robinsons and Tango and highly successful
innovations such as J20 and Fruit Shoot. Included within the portfolio are the
Pepsi and 7UP brands, which Britvic produces, markets, sells and distributes
under its exclusive appointment from PepsiCo which runs until December 2023.
This brand and product portfolio enables Britvic to target and satisfy a wide
range of consumer demands in all major soft drinks categories, via all available
routes to market.
Cautionary note regarding forward-looking statements
This announcement includes statements that are forward-looking in nature.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
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