Britvic expects full-year earnings to reach top end of guidance

24th Jul 2014 09:40

Softdrinks giant Britivic said full-year earnings is expected to be at the top end of its guidance after achieving a rise in third quarter revenue across the UK, France and international divisions.UK revenue increased 4.6% in the third quarter, driven by growth in carbonates sales. French revenue grew by 5.6%, as volume jumped 4.1%, while international revenue climbed 3.8% to offset a 2.5% decline in Ireland."We have delivered another strong quarter with comparable revenue growth of 4.1%. The business has continued to grow, despite the challenging retail trading and consumer environment in our European markets," said Chief Executive Simon Litherland."This year's innovations, including Robinsons Squash'd, have performed well and our consumer marketing campaigns have been highly impactful, including our sponsorship of the Tour De France and the association of Pepsi with football, which helped to deliver an exceptionally strong carbonates performance."He added that early trading in the fourth quarter is in line with expectations, in spite of the particularly tough comparatives as a result of the exceptionally warm weather last summer.The group anticipates that earnings before interest and tax (EBIT) this year will be towards the top end of the £148m to £156m range guidance, due to in-line trading and cost savings from strategic initiatives.Investec said: "Although there could be a tough fourth quarter comparative, the group indicates it now expects to be towards the top end of the EBIT range of £148 156m. We lift pre-tax profit by 3% and our target price increases to 725p (from 716p). We retain our 'hold' recommendation."RD