Weak Euro Could Impact Britvic Ireland Performance
Published on Nov 3 2015 7:39 AM
Shore Capital Stockbrokers has said that Britvic Ireland's full year performance is likely to be impacted by a weaker euro, particularly in the group's Q4 trading period.
Shore Capital made its assessment ahead of the release of Britvic's full year trading results (for the year to 27 September 2015), which are released on 25 November.
"Britvic reported a solid performance in Ireland for the first nine months of the year with revenue up 1.9% on a constant currency basis," said Shore Capital's Phil Carroll. "However, the performance slowed in Q3 to growth of 0.7% albeit still in positive territory.
"We expect the deflation in the market and a slower volume performance in Q4 to have put further pressure on top-line growth. Note: the weak euro will have a negative impact on the division’s reported performance."
Overall, Shore Capital said that it anticipated Britvic's revenue performance to be slightly down on last year, due to "deflation in the soft drinks market, where prices are in part reflecting the significant reductions in input costs", as well as increased promotional activity in the market.
Carroll added that "the business is well positioned to drive organic growth going forward in its core markets, with a strong portfolio that notably looks quite balanced."
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