Published On: Wed, Nov 25th, 2015

Britvic Cuts Costs And Increases Profit Margins


Some of Britvic’s brands include Robinsons, PepsiCo & 7up.

Britvic PLC (LON:BVIC) announced on Wednesday its preliminary results for the 52 weeks ended 27 September 2015 showing strong growth in profit margins pushing them to up their dividend to investors.

The company saw its profit after tax and exceptional/other items up by 15.7% from 89.7 million to 103.8 million. Revenue saw a slight decline of 0.6% to £1,300.1 million with Britvic highlighting a “slow start” to the year due to consumers yet to increase the amount of money they spend on soft drinks, whilst becoming increasingly health conscious.

The board proposed a final dividend per share of 16.3p, up 10.1% on the prior year which they said reflects the board’s confidence in the company’s future prospects and the organisations cash flow generation.

Simon Litherland, Chief Executive Officer commented:

“We have delivered another strong set of results, with margin growth and profit significantly ahead of last year, despite challenging market conditions. In all of our core markets, we continued to take volume and value share. I’m pleased to have completed the acquisition of Ebba in Brazil, which will create significant value for shareholders in the future.

2016 will see significant developments and investment in the drivers of our future growth.  We have established the route to market for Fruit Shoot multi-pack in the USA, which we will launch in the first half of calendar 2016. We are also planning a major investment programme in GB, which will deliver further efficiencies and flexibility in our supply chain.

We have seen a slow start to the year, reflecting the continued challenging market conditions. However, with our compelling marketing and innovation plans and our continued focus on disciplined cost management we are confident of increasing our profitability in 2016”.

Britvic’s shares opened 0.56% down on Wednesday morning.

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