Bottling firm Refresco has seen its revenue rise 2.6% in the second quarter of its financial year, to €1.06 billion, however revenues at its European operation were down marginally to €675 million (Q2 2018: €701 million).
The group said that total volumes at its operations in Q2 were 3,050 million litres, a 1.2% decrease on the same quarter the previous year due to poor weather conditions in June across several of its key markets.
In the first half of the year, however, volumes increased by 5.1%. If the Cott's bottling business, which was consolidated into Refresco in January, is excluded, like-for-like volumes at the business were up 0.2%.
The share of contract manufacturing at the business rose 3.0% compared to the previous year, with contract manufacturing now accounting for 32.0% of total volumes and retailer brands accounting for 68.0%.
'Solid Step-Up'
"We are pleased to report a solid step-up in the second quarter results," commented Hans Roelofs, the chief executive of Refresco. "However, weather conditions in the month of June were unfavourable across our key markets compared to the same period last year, which was reflected in our volume development for the quarter.
"Year-to-date volume increased both organically and on a reported basis reflecting our investments in production capabilities and new business opportunities, which we have been able to scoop up thanks to our improved coverage especially in North America."
The group reported operating profit of €59 million in the quarter, up from €6 million in the same quarter the previous year, while operating costs decreased by €11 million in the period.
Gross profit margin was €470 million for the quarter, an increase of 9.8% on the same period the previous year, with the group saying that 'added-value services', including warehousing and procurement to third parties, is helping it make its transition from a bottler to a beverage solutions provider.
Synergy Benefits
"Our gross profit margin per litre increased to 15.6 euro cent per litre, a combined effect of synergies from the acquisition of the former Cott's bottling business, a positive currency impact related primarily to the strengthening of the USD as well as a continued shift towards smaller packaging formats, value-added products and services for our customers," said Roelofs.
"Following close to 19 months of integration of Cott's bottling business in North America and the UK, we are pleased to see the synergies flowing into our results and we see many opportunities to continue to execute our buy and build strategy in our existing markets.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
