Soft drinks maker Britvic has reported a 'positive' start to its financial year, with group revenue increasing 8.1% year on year to £443.5 million (€518.6 million) in the first quarter to 31 December 2023.
Britvic also witnessed volume growth of 1.7% compared to the year-ago period, it said in a trading statement.
The company reported 'strong' Christmas trading as group revenue and volume increased 12.1% and 6.4%, repectively, in December.
Simon Litherland, chief executive officer of Brtivic commented, “Our performance in the first quarter was strong and in-line with our expectations, as we continue to offer consumers value as well as great taste, with our portfolio of family favourite soft drinks brands.
“We have exciting plans for the year ahead across our markets, with new innovations and engaging marketing activations, including Pepsi’s first brand refresh in 14 years.”
Divisional Performance
The company saw 'robust performance' in Great Britain during the quarter, with revenue up 6.9% and both retail and hospitality channels witnessing growth.
In Brazil, its revenue increased by more than a fifth (21%), including the benefits of the acquisition of Extra Power energy drink last year.
Britvic saw revenue growth of 6.0% in other international markets, with Ireland registering a 12.5% year-on-year increase.
In France, revenue increased 1.1% as 'strong' price/mix offset a volume decline.
Analyst Comment
An analyst note shared by Third Bridge stated that Britvic is over the worst of raw material inflation and the impact of the cost of living.
The company managed to protect margins by increasing prices and adjusting recipes without facing backlash from customers.
Third Bridge analyst Orwa Mohamad added, "Britvic should pay attention to low- and no-alcohol, as well as alcohol alternatives. This segment is poised to directly compete with the soft drink industry, particularly within the hospitality sector."
