Fizzy drinks boost Britvic sales

Robinsons and Tango maker Britvic today said sales growth had accelerated despite continued pressure on its performance in pubs and bars.

The group’s revenues in Britain were up 4% in the six months to April 17, with the second quarter showing growth of 6.8% after a reduction in promotional activity contributed to an increase in average prices.

The UK-based group, which has the rights to sell Pepsi products in the UK, said volumes of fizzy drinks rose 4.7% following an increase in sales through supermarkets and shops.

However, this was partly offset by a decline of 6.1% in still drinks, mainly caused by falling sales in the pub sector as a result of trading down from J20 and Britvic mixers to value categories such as on-tap carbonates.

Volumes of still drinks were also impacted by a softening of promotional activity in advance of the launch of Robinsons ’double concentrate’ near the end of the period.

Group pre-tax profits were flat in the six months at £27.7m (€32m) after the company faced an “unprecedented” period of cost inflation, such as the rising price of steel and sugar, as well as plastic material.

Stripping out the acquisition of French business Fruite Entreprises, now known as Britvic France, for €237m a year ago, group revenues were 2.7% higher at €595m.

The group also reported a 20% rise in sales through its international arm, with sales of Fruit Shoot growing in the US and Australia.

Chief executive Paul Moody said he was comfortable with analysts’ consensus forecasts of operating profits of €162m for the full-year.