Britvic plc
02 March 2006
2 March 2006
Britvic plc ('Britvic') Trading Update
Context
InterContinental Hotels Group plc, ('IHG') the controlling shareholder in
Britvic prior to its flotation, has today released its 2005 Preliminary Results.
IHG's announcement contains Britvic's revenue and operating profit
pre-exceptionals figures for the 50 week period to 14 December 2005 which
reflects the period up until Britvic's flotation. These figures are set against
the non-comparable 53 week period to 25 December 2004. As a result Britvic today
releases a trading update in advance of its normal financial calendar to put
into context the figures disclosed by IHG.
Trading
For the twelve weeks to 25 December 2005, revenue increased by 1% and operating
profit pre-exceptionals increased by 5% compared to the same period last year.
Since Christmas, there has been a weakening in the total soft drinks market in
the UK. The consumer trend towards 'better for you' is accelerating and as a
consequence sales in the carbonates category, except those with no added sugar,
have slowed. In contrast stills have shown growth. Against this market
background Britvic is performing well, growing market share in key categories in
the year to date; especially adult, cola and juice drinks.
In line with its plans outlined at the IPO Britvic has successfully launched a
programme of new product innovations, including three new products within the
fast growing water segment, which will further strengthen its stills offer. It
anticipates that new products will boost top line growth in the second half of
the year.
Britvic is also making strong progress in its overhead reduction programme,
which is on course to deliver at least a further £4 million in addition to the
£6 million target for 2006 announced at the time of flotation. The benefit of
this additional reduction will be principally seen in the second half of the
current financial year, with further improvement on our 2007 target also
expected.
Paul Moody, CEO of Britvic plc commented:
'Despite the current challenging market conditions, the growth of stills and no
added sugar carbonates continues to play to the strength of Britvic's existing
portfolio and NPD pipeline. If the soft drinks market shows recovery over the
balance of the year as we anticipate, we remain confident of delivering earnings
within market expectations, albeit at the lower end'
For further information please contact:
Investors:
John Gibney/ Jo Guano 01245 504 330
Media:
Mike Smith/ Conor McClafferty (Brunswick) 0207 404 5959
Notes to editors
In line with its planned future reporting timetable Britvic will release a
pre-half year close Trading Update on 4 April, which will include the H1 2005
IFRS pro- forma adjusted numbers.
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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