Britvic profits to fizz up more than expected

23rd Oct 2014 07:56

Drinks maker Britvic forecast fizzier-than-expected annual profits as a strong international performance made up for weaker weather-hit sales in Europe.Britvic said full year pre-tax earnings before interest would be marginally ahead of the top end of its previous guidance range of £148m-£156m and well ahead of last year.Full year revenue increased by 2.4%, with both volume and price growth, and cost cuts were put in place successfully with a slightly higher benefit in the year than anticipated.In each of the group's European markets, the soft drinks category declined in the fourth quarter as a result of poor weather, particularly in July and August.UK revenue in the fourth quarter fell 2.1%, but was up 3% in the full year while the take-home soft drinks market value declined 3.9% in the quarter.Irish sales in the fourth quarter dropped 5.2% and were down 4.5% in the full year and French fourth quarter revenue fell 12% but was 1.2% up in the full year.International revenue, however, was the biggest success, rising 35.2% in the fourth quarter and by 16.9% in the full year.Chief executive Simon Litherland said: "We have delivered a strong performance despite the poorer summer weather and the continued challenging trading environment. We now expect operating profit marginally ahead of the top end of the guidance range we outlined at the start of the year."We anticipate that the prevailing challenging market conditions will continue for some time. Nevertheless, we look forward with confidence to further earnings growth in 2015."Shares rose 8p or 1.26% to 644p at 08:08 in London.