Schloer helps Merrydown cut losses

Drinks maker Merrydown today said a strong summertime performance from its non-alcoholic soft fruit brand Schloer had boosted half-year turnover 17% to £9.7 million.

An “exceptional” summer for Schloer saw sales of the grape-based drink rise 29% to £6.1 million in the half-year to the end of September.

East Sussex-based Merrydown said Schloer had benefited from long-term investment, including television campaigns this year on GMTV and some ITV regions, as well as in-store promotions.

Newly-packaged Schloer one-litre bottles were also well received by consumers and limited edition flavours, using fruit other than grapes, had proved popular, the company added.

Merrydown added that cider sales were slightly up on last year, despite tough market conditions.

With turnover up 17%, first half pre-tax losses reduced to £75,000 from the £430,000 seen in the same period in 2002.

The group said it was confident it would reach its growth targets in the traditionally stronger second half.

Chief executive Nigel Freer added: “This is an excellent first-half result and, since the half-year end, the group has continued to perform in line with expectations.”

Despite anticipated pensions and other cost pressures in the second half, the group remained on track for satisfactory full-year results, Mr Freer added.

Analysts are forecasting full-year profits of £1.6 million, up £200,000 on last year’s figure. As in previous years, no interim dividend was offered.