Business

Irish revenue rose 23 per cent at Ballygowan owner Britvic

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Britvic, owner of Ballygowan and MiWadi, saw underlying Irish revenue rise 23 per cent in the six months to the end of March as pubs and restaurants reopened.

Soaring costs led to a price hike earlier in the year, with chief executive Simon Litherland warning of “continued cost inflation and pressure on consumer spending” into 2023.

Double-digit sales growth continued across the group through April, Britvic said.

Both home trade and revenue from hotels, cafes, bars and restaurants in Ireland posted double-digit growth in the six months to April, Britvic said in its interim results on Tuesday.

The Irish business “delivered a significant improvement in operating margin,” Britvic said in a statement, with market growth helped by the launch of two energy drinks last year.

Britvic – which owns the Pepsi, Tango, 7UP, Lipton and Robinsons brands in the UK – introduced price increases in the first quarter to offset rising costs, it said.

UK revenue rose 19.3 percent in the six months to the end of March, Britvic said, while Brazil revenue rose 15 percent and growth in France continued.

Total group revenue rose 18.5 percent to £719.3 million in the six-month period, with profit after tax up 48.7 percent to £45.8 million.

It enabled the group to announce a £75million share buyback program to be implemented over the next 12 months.

Britvic has also increased its interim dividend by 20 per cent to 7.8 pence sterling, with adjusted earnings per share up 27.8 per cent to 19.4 pence.

Adjusted earnings before interest and tax (EBIT) rose 20.7% to £73.5 million, with the adjusted EBIT margin up 20 basis points to 10.2%.

Chief Executive Officer Simon Litherland said he was “pleased” with the performance in the first half but said costs were likely to continue to rise while inflation could put pressure on consumer demand.

“We have accelerated revenue growth in all of our markets and made good progress on our strategic priorities.

“We have successfully implemented pricing and cost measures to contain significant levels of inflation, while continuing to build investments to support our short- and long-term growth ambitions.

“Current geopolitical uncertainty is expected to result in continued cost inflation and pressure on consumer spending through at least 2023.

“However, I remain confident that we will continue to successfully weather the headwinds thanks to our portfolio of leading brands, strong customer relationships, intelligent revenue management capabilities and the resilience of our supply chain and people.

“This will allow us to maintain our positive momentum, drive our key performance metrics and strategic priorities, and continue to create value for all of our stakeholders.”

https://www.independent.ie/business/irish/irish-revenues-up-23pc-at-ballygowan-owner-britvic-41657148.html Irish revenue rose 23 per cent at Ballygowan owner Britvic

Fry Electronics Team

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