Britvic in ‘strong start’ to 2017 while AG Barr on track

Robinsons, Lipton and J2O owner Britvic reported first quarter revenue of £351M in the three months to December 31. Sales were driven by a 19.8% boost in its International Division.

The manufacturer’s British (GB) division reported a 2.2% rise in revenue compared with the previous year. Soft drinks sales “continued its outperformance of the market”​, Britvic said, as its revenue increased 5.5%. But, British still drinks revenue fell by 3.8%.

‘Good progress’​

Britvic chief executive Simon Litherland said: “The new financial year has started well with group revenue 4.3% ahead of last year, continuing the good progress we made as a business in the prior year. Encouragingly, all our key markets have delivered revenue growth.​

“Whilst the external environment remains uncertain, we are confident that the strong execution of our marketing and innovation plans combined with disciplined revenue management and our cost saving initiatives will deliver full year results in line with market expectations.”​

Meanwhile, Irn-Bru maker AG Barr reported revenues of £257M, across the 52 weeks to January 28. “Tight cost controls”​ meant the manufacturer was on track to finish its financial year on target, AG Barr said.

It revealed plans to invest £10M in its Milton Keynes facility to improve efficiency and flexibility.

‘Strong free cash flow’​

An AG Barr statement read: “Our balance sheet is robust, supported by strong free cash flow. We have maintained tight control of our costs and, in the final quarter, successfully implemented a company-wide re-organisation that has both enhanced our organisational capability and reduced our overhead base.  ​

“Looking ahead, the uncertain economic environment indicates that 2017 will be another challenging year for UK-based businesses. However our strong and flexible business model, our differentiated brands and our well-invested asset base ensure we are well placed to continue to deliver long-term value to shareholders.”​

The trading update came after AG Barr revealed plans to cut 10% of its workforce​, in its half-year trading update in September. Ninety jobs would be lost, as the company reported a 2.8% drop in revenue, it said at the time.