Britvic sales rise amid price hikes

(Sharecast News) - Drinks company Britvic posted a rise in full-year revenues on Wednesday thanks in part to price increases, but profits fell. In the year to 30 September, revenue rose 6.6% to £1.7bn, with adjusted earnings before interest and tax up 5.9% to £218.4m.

However, pre-tax profit declined to £156.8m from £175.1m a year earlier.

Britvic said demand remained strong, but there was a modest volume decline due to a tough fourth-quarter comparable of the hot summer in Europe in 2022 and poor weather in July and August 2023. The company hailed "standout" performances from Tango and Pepsi MAX.

Chief executive Simon Litherland said: "Through a combination of revenue growth management actions and cost discipline we have been able to mitigate the substantial cost inflation pressures, with adjusted EBIT margin only 10 basis points down on last year."

Britvic said the soft drinks category was "strong, resilient and growing", and continues to outperform broader consumer goods.

"Consumption of non-alcoholic beverages continues to grow and, even before the significant inflation of the past couple of years, soft drinks have consistently increased their retail sales value ahead of volume," the company said.

"The category is a regular staple and an affordable treat, with demand once again proving resilient, as it has in previous periods of economic downturn and geopolitical volatility, with limited trading down to own label."