Britvic profits rise in 'challenging' environment
Drinks maker Britvic posted a rise in full-year profit and revenue on Thursday despite a "challenging" environment.
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In the year to 30 September, pre-tax profit rose to £145.8m from £138.8m on revenue of £1.5bn, up 5.1% from the previous year.
Adjusted earnings per shares increased 6.4% to 56.3p and the final dividend was lifted to 20.3p a share, up 5.2% on the year before.
The company said it faced a number of headwinds during the year, including the introduction of the Soft Drinks Industry Levy, disruption from the temporary shortage of carbon dioxide in GB and Ireland during a period of prolonged hot weather and the impact of multiple business failures in its customer base.
GB Carbonates saw revenue growth of 4.9% and volume growth of 1% despite the shortage of CO2 as it benefited from the company's low sugar drinks, with Pepsi Max continuing to grow and gain market share.
Meanwhile, the stills division saw a 4.2% increase in revenue and a 2.9% rise in volume as Robinsons showed continued momentum in the fourth quarter.
The performance in France was challenging as the soft drinks market declined, with poor weather denting the syrups category. In Ireland, however, Britvic saw another strong year, with revenue growth of 8.3% and volume up 2.2%.
Chief executive officer Simon Litherland said: "We have delivered a strong performance in a challenging environment, with good revenue, margin and earnings growth. I am delighted that we have grown our stills brands, demonstrating that our investment in innovation and marketing is beginning to pay off. The investment in the transformational business capability programme is now nearing completion and is already delivering significant efficiency and commercial benefits. Free cash flow will increase materially in 2019 as capital spend falls back towards normal levels.
"Britvic has consistently demonstrated that we are a strong, agile business, operating in a resilient category. In 2019 we have exciting plans for our portfolio of leading brands across our markets. Whilst political and economic uncertainty will undoubtedly continue, we are confident we will continue our long-term track record of growing earnings, dividends and shareholder value."
Shore Capital said the performance for the year "looks very solid" as it reiterated its 'buy' recommendation.
"We believe Britvic enters FY2019F with a strong platform from which it can drive growth and now that it is nearing the end of the business capability programme programme where around half the profit benefits have been realised (circa £11m) it gives us confidence that our forecasts going forward are looking at least underpinned if not seeing some upward pressure."