Britvic has posted a 6.5% decline in revenue in its first half to £617.1 million, its latest financial results show.
The company's adjusted earnings before interest and taxes (EBIT) decreased by 15.4% to £60.1 million, for the six months ended 31 March 2021.
According to the report, profit after tax fell by 14.7% to £33.2 million, during the period.
Lockdowns Impact
The MiWadi owner said that 'inevitably, its financial performance was impacted by both the re-introduction of lockdowns and continued social distancing measures.'
However, the company said that the trends it saw in 2020 have continued in 2021, with sales in the At-Home channel remaining strong, while Out-of-Home sales declined, albeit to a lesser degree than in the first nationwide lockdown.
“In challenging circumstances, we have delivered a robust first half performance, demonstrating the resilience and agility of our business," said Simon Litherland, chief executive officer, Britvic.
Key Growth Markets
The soft drinks company said it saw strong growth in At-Home channels, resulting in continued share gains in GB (Great Britain) and Brazil.
"We have continued to win in the channels open to us and have gained share in our key growth markets of GB [Great Britain] and Brazil. Our cash management has been particularly strong, and I am pleased to reinstate our interim dividend," Litherland said.
Litherland said the group has also made good progress on its strategic opportunities, such as simplifying its Irish business, entering the mainstream energy category in GB and Ireland by relaunching Rockstar with PepsiCo, and acquiring Plenish, a leading natural premium brand in the fast growing plant-based drinks category, during the period.
Looking Ahead
Litherland highlighted that in the second half the company plans to rebuild investment behind its brands to ensure it emerges strongly and is best positioned for the recovery as it evolves.
"As lockdown restrictions have started to ease in some of our markets, early trading has been encouraging," he said.
"Although some uncertainty does remain, I am confident that our strategy and focus on People, Planet and Performance will ensure we deliver growth for all our stakeholders, both in the short and long term,” Litherland added.
Britvic is one of the leading branded soft drinks businesses in Europe.
The company combines its own leading brand portfolio including Robinsons, Tango, J2O, London Essence, Teisseire and MiWadi with PepsiCo brands such as Pepsi, 7UP and Lipton Ice Tea, which Britvic produces and sells in GB and Ireland under exclusive PepsiCo agreements.
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