Posting robust half-year results today, Britvic highlighted that it is likely to face continued cost inflation pressure and cautioned over falling consumer spending amid the cost of living crisis.
During the six months to 31 March, the soft drink giant’s revenue climbed 16.6% (18.5% on a constant exchange rate basis) to £719.3m, driven by volume gains and price hikes to offset rising costs. It noted that it had continued to see good growth in At-Home channels, whilst Out-of-Home channels recovered back towards pre-Covid levels.
In its core British market, Britvic’s revenues leapt 19.3% to £493.0m, with Out-of-Home sales soaring 59% on the previous year when Covid restrictions were in place. At-Home sales grew 4.4%.
Adjusted EBIT jumped 22.3% to £73.5m, while unadjusted EBIT rose 35.8% to £67.1m. The adjusted EBIT margin improved by half a percentage point to 10.2%.
Britvic highlighted that revenue momentum had continued in April, with double-digit percentage revenue growth, in line with the company’s expectations.
“We have accelerated revenue growth across our markets and made good progress against our strategic priorities. We have successfully executed pricing and cost actions to mitigate significant levels of inflation, while continuing to rebuild investment to support our near and longer-term growth ambitions,” said Simon Litherland, Chief Executive of Britvic.
“The current geo-political uncertainty is likely to result in continued cost inflation and pressure on consumer spending at least into 2023. I remain confident however that we will continue to successfully navigate the headwinds, thanks to our portfolio of leading brands, strong customer relationships, smart revenue management capability and the resilience of our supply chain and our people.”
