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Britvic and AG Barr post strong results

Britvic and AG Barr post strong results

Drinks companies AG Barr and Britvic have both posted strong financial results today (July 25th).

The two companies were close to completing a merger deal earlier this year, which was called off after Britvic decided that it was no longer in the best interests of the firm.

In its results for the third quarter of the financial year, revenue at Britvic rose by 5.4 per cent to reach £316.3 million.

Sales in fizzy drinks across the UK were up by 2.1 per cent, despite volumes slipping by two per cent.

British sales of still drinks experienced a 0.6 per cent reduction in volumes, but still managed to increase by eight per cent.

Commenting on the figures, chief executive Simon Litherland said: "These results combined with strong sales in the early weeks of quarter-four, reinforce our confidence that we will deliver EBIT for the full year at the upper end of our guidance range of £125-£131m. We are now fully focused on executing the strategy that I outlined at the interims.”

Despite the results, some analysts are remaining cautious about the company's future.

Investec's Nicola Mallard has issued a "hold" rating on Britvic's stock, noting that the company's total volumes were down by 3.3 per cent so far this year.

She told Food Manufacture: "As in the second quarter, this sales uplift is delivered purely on price, with average retail price up by 6.2 per cent and volumes down by 1.5 per cent as it focuses efforts on driving value rather than volume growth."

Meanwhile, Irn Bru maker AG Barr has also reported a surge in its sales, which it claims has been due to the recent spell of hot weather that is sweeping across the UK.

Sales for the second quarter of the financial year rose by 9.8 per cent. It is now expecting revenue of around £127.5 million for the six months ending July 28th, which would be an increase of 4.9 per cent in comparison to last year.

 

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