BUSINESS STOCKMARKET: No frills flights flatten fizz sales
Britvic, whose brands include Tango and J20, reported a steep fall of 43% in pre-tax profits for the full year to £36.5m.
The group had not anticipated the speed of the trend to healthier drinks but is trying to adapt as quickly as possible. Volumes fell 3.3%, pushed down by a continuing fall in sales of fizzy drinks.
Paul Moody, Britvic’s chief executive, reckons UK fizzy drink sales have fallen by about 2% over the past three months compared with the same period in the previous year. Revenues fell 2.6% to £677.7m.
Britvic blames the boom in cheap air fares which requires passengers to pay for food and drinks. The weakness showed through in Britvic’s international business which supplies airlines – sales revenues fell 4.9% to £23.5m.
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Profits were also hit by a raft of exceptional costs.
The growth points lie in brands such as Fruitshoot H2O, a flavoured water brand aimed at children, and Robinsons squash, which have both seen an increase in sales figures.
© db January 2007
