Britvic plc – in the process of merging with AG Barr of Irn-Bru fame – has reported its results for the 52 weeks ended 30 September 2012, showing a 19% profit decline as a result of the recall of Robinsons Fruit Shoot drinks.
Group Financial headlines:
- Revenue down 0.8% to £1,256.4m. The Fruit Shoot recall constrained revenue growth by approximately 2%
- EBITA of £115.6m including costs associated with the Fruit Shoot recall of £16.9m with the balance of up to £8m to come in 2013
- Rigorous cost discipline and a focus on cash generation contributed to a reduction in net debt
- Full year dividend maintained at prior year level of 17.7p per share
Group Business Highlights:
- GB Business takes market share led by carbonates and Pepsi
- Fruit Shoot re-entry plan on-track
- Robinsons take-home value market share back to its highs of 2 years ago
- Agreement signed with the Pepsi-Cola Bottling Company of Central Virginia for the distribution of Fruit Shoot in Virginia
- France syrup brands take further market share
Paul Moody, Chief Executive commented:
“Britvic has delivered some notable successes in the last twelve months. Our GB carbonates brands, and Pepsi in particular, significantly outperformed the market in this Olympic year, Robinsons squash returned to its two year historic high share of the market, our syrups brands in France increased volume and value share, and the expansion of our US franchise business developed in line with our stated plan.
“In other respects, this has been a difficult year for the group and the progress that we made was more than offset by the impact of the Fruit Shoot product recall. Additionally, the negative macro-economic trends, leading to weak consumer confidence and the cold, wet summer endured across most of our markets, weighed heavily on the soft drinks market and Britvic within it.
“The Fruit Shoot product recall was regrettable, but necessary in order to protect the safety of our consumers. The business responded quickly and efficiently to manage the situation and refocused our priorities as required over the balance of the year.”