Update-Robinsons Fruit Shoot and Current Trading

RNS Number : 3785H

Britvic plc

11 July 2012

 



Britvic plc ("Britvic")

Update Statement Re: Robinsons Fruit Shoot and Fruit Shoot Hydro Product Recall

and Current Trading

11 July 2012

We announced last week the recall of all Robinsons Fruit Shoot and Fruit Shoot Hydro packs featuring the new design cap.

Britvic today announces that despite our ongoing investigations, we have been unable to speedily resolve the issues regarding the new design cap. Therefore we have decided to re-supply with an alternative in-market proven sports cap, in the short term. As a result we will start to re-supply customers in six weeks, with a gradual increase to enable us to meet historic levels of demand within six months.

It is difficult to be precise as to the full financial implications given the developing situation.

In addition to the previously guided cost of the consumer recall, the now extended period of absence from the market along with a restriction on available cap production capacity of up to six months results in a material financial change. We believe this will now have an impact on the group profit before tax in the region of £15m to £25m across the current and next financial year. This includes an anticipated impact in 2013 financial year of between £5m and £7m. 

There will be an additional negative impact on working capital which will reverse in 2013.

As previously announced, this recall does not affect Fruit Shoot in the USA, Australia or Republic of Ireland. Fruit Shoot My-5 is not being recalled.  No other Robinsons products are affected. 

Current Trading

In May we reported that the UK soft drinks market and our trading had been adversely affected by poor weather conditions and weak consumer sentiment.  Since then trading conditions have not improved and the group now expects to deliver a result for the current financial year that is at the bottom end of market expectations, before taking account of the impact of the Fruit Shoot recall.

A further update on results and trading will be provided with the group's Q3 IMS which is scheduled to be released on 19th July 2012.

For further information please contact:

Investors:
Rupen Shah / Steve Nightingale	[phone]
Media:
Mike Smith/Nick Cosgrove (Brunswick)	[phone]
Susan Turner	[phone]

 

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