Revenues fall 5.3% at Britvic Ireland

REVENUES AT soft drinks group Britvic Ireland declined by 5.3 per cent to £81.9 million on a constant currency basis in the 28 weeks to the end of April 17th as it continued to feel the effects of the recession on consumer spending.

Britvic, whose brands include Ballygowan and Club, said the Irish market remains “challenged”, particularly sales of its products in pubs. Its volume was down 7 per cent at 106 million litres but its average realised price per litre rose by 3.9 per cent as the company pushed through price increases.

This was Britvic’s first price rise in Ireland for some years and reflected the increased cost of sugar, tin and other items. Britvic incurred restructuring costs in Ireland of £7.5 million in the period relating to a rationalisation plan that reduced its headcount here by 100. There are now 630 staff employed across Britvic Ireland. Andrew Richards, managing director of Britvic Ireland, said the market remains tough but “one or two channels are stabilising”. Sales to the licensed trade remain “very difficult . . . they were down year on year”, he said.

Britvic said its stills portfolio “performed well, especially the key brands of Robinsons, Fruit Shoot and MiWadi”. Earlier this month, Britvic agreed to acquire drinks wholesaler Quinn’s of Cookstown from CC. “This will allow us to be an all-Ireland wholesaler and also give us significantly increased access to the licensed trade in Northern Ireland,” Mr Richards said.

At a group level, Britvic’s revenues rose by 26.1 per cent to £633.1 million. Its earnings before interest, tax, depreciation and amortisation rose by 7.9 per cent to £45 million.