Euro Weakness To Impact Britvic Ireland Performance
Published on Jan 20 2015 7:13 AM in Drinks
A weaker euro exchange rate is likely to impact on the performance of Britvic Ireland in Q1, according to Shore Capital Stockbrokers.
Britvic releases its Q1 trading statement for its UK and Irish operations next Tuesday, 27 January, for the 12 weeks to 21 December.
"We expect Britvic Ireland to report revenue growth of 0.5% on a constant exchange rate (CER) basis but down 6.2% on a reported basis due to euro weakness against sterling," said Phil Carroll, Beverages Agri-Food Equity Research, Shore Capital.
"We expect a gradual improvement in the Irish economy, combined with soft comparatives, to result in a broadly flat underlying sales performance."
Shore Capital expects Britvic to post a 'subdued' revenue performance overall for the quarter, driven by price deflation and weak volumes in its UK division, in what has been a 'challenging and highly promotional UK soft drinks market'.
"Whilst we expect Britvic to announce a subdued Q1 2015 sales performance, we believe the investment case for the business remains attractive overall as it benefits from self-help through its cost-savings programme as well as the broader deflationary cost environment," said Carroll.
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