Britvic has posted good third-quarter results and announced two acquisitions, one in the UK and another in Brazil.
Total group revenue climbed 9.9% to £476.7m during the period to 30 June, driven by “positive” price/mix and volume growth.
In its core Great Britain unit, sales grew 10.1%, with volume growth in both retail and hospitality channels.
In Brazil, revenue slipped 1.9% after price increases impacted volumes. Britvic’s other International revenue rose 13.3%, with Ireland seeing positive volume growth, while in France, a strong price/mix offset soft volumes.
Britvic stated that its full-year revenue and EBIT are set to be within the range of current market expectations.
“Consumer demand for our portfolio of leading family favourite brands remains buoyant ahead of the key summer trading period, as we continue to offer consumers great quality and value at affordable prices,” said CEO Simon Litherland.
Meanwhile, Britvic announced the acquisition of Jimmy’s Iced Coffee in the UK and energy drink brand Extra Power in Brazil.
Jimmy’s Iced Coffee was described as “the fastest growing RTD iced coffee brand in the segment,” generating a retail sales value of £17m in the year to June 2023, a 43% increase from the previous year.
Jimmy’s coffees have fewer calories per serving than the category average, come in fully recyclable packaging and are HFSS-compliant. Britvic stated that it intends to accelerate the growth of Jimmy’s by leveraging its customer relationships to drive new listings and increase distribution while increasing cost efficiency through its supply chain expertise.
Litherland commented: “We have a long track record of acquiring and developing brands, and I am confident in our ability to quickly expand our position in the iced coffee category – which is an exciting and fast-growing market segment.”
Meanwhile, the company noted that the acquisition of Extra Power was part of its strategy to expand its presence across Brazil. With a 42% market share in its core regions near Brasilia, the brand gives Britvic access to the fast-growing, high-margin energy category. In the year to December 2022, Extra Power generated sales of R$118m (£19m) after growing 26% on the previous year.
Financial terms of the two deals were not disclosed.
