Britvic shares close on high as it shrugs off poor summer weather to beat profit forecasts
BRITVIC shares closed at a record high of 811p, up 52½ yesterday as it shrugged off poor summer weather to beat profit forecasts and played down concerns over the impending sugar tax.
The Robinsons and Fruit Shoot maker admitted demand for still drinks was hit by competition and lower temperatures in the key July and August school holidays.
Fizzy drinks, particularly a premium R Whites lemonade range, fared better.
Annual adjusted pre-tax earnings were up 5.1 per cent to £195.5million on 7.7 per cent higher revenue of £1.54 billion.
Simon Litherland, chief executive, said: "It depends on how consumers react to the price increases, whether they swap to low-sugar or zero-sugar options or switch to other brands.
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"It depends on how competitors approach it and how shopkeepers layout their stores or promote drinks."
Analyst Phil Carroll of Shore Capital said: "The performance from a profit standpoint looks ahead of expectations despite a generally weaker performance as expected in Q4 in its core markets.
"The business enters [the 2018 financial year] in good shape, in our view, however there is a degree of uncertainty caused by the sugar levy."
