Soft drinks firm Britvic has posted strong performance in the first six months of its current fiscal, with profit after tax increasing 48.7 per cent to £45.8 million.
Revenue increased 18.5 per cent to £719.3m in the six months ended 31 March, and adjusted EBIT (earnings before interest and taxes) rose 20.7 per cent to £73.5m. The revenue growth has been underpinned by volume and pricing growth across all business units.
The company has witnessed continued growth in at-home channels, while out-of-home channels have been recovering back towards pre-Covid levels.
Simon Litherland, chief executive, said the pricing activity and promotional strategy, coupled with the management of its mix and disciplined cost control have helped to mitigate the impact of inflation.
“We have accelerated revenue growth across our markets and made good progress against our strategic priorities,” Litherland commented.
“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.”
Litherland noted that 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,” he said.
“This will enable us to maintain our positive momentum, progress our key performance metrics and strategic priorities, and continue to create value for all our stakeholders.”
The company has announced share buyback programme of £75m in the next 12 months, and declared an interim dividend of 7.8p, up 20 per cent.
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