Higher Demand For Healthier Drinks Lifts Britvic's Half-Year Revenue
British soft drink company Britvic Plc said its half-year revenue rose 4.5% to £733.2 million, as it sold more no or low-sugar drinks including Pepsi that helped offset the impact of poor weather.
Shares of the FTSE 250 listed company was up as much as 8% in early market trading on Wednesday.
Sales in the UK for its carbonated drinks rose to £294.9 million from £270.3 million, while volumes increased 5.1% to 677.3 million litres last year.
"Pepsi has continued to grow volume and value market share, with no-sugar MAX outgrowing all other cola variants. Revenues also increased for 7UP, Tango and our natural energy brand Purdey's," the company said.
The UK bottler said profit before tax for the 28 weeks ended April 15 fell to £41.8 million from £50.1 million, as it took a charge of £21.6 million.
Soft Drinks Industry Levy
The results included only one week of trading following the introduction of the Soft Drinks Industry Levy, the company said, adding it is too soon to judge the consumer response and give a guidance on its impact.
Britain's sugar tax levy, which came into force in April, has two thresholds - one of 18 pence per litre on soft drinks with more than 5 grams of sugar per 100 ml and another of 24 pence per litre on those with more than 8 grams per 100 ml.
Ninety-four percent of Britvic's owned brands and 72% of the company's overall portfolio are either under or exempt from the sugar tax.
The company said it sold 1.2 billion litres of soft drinks this year, a 3.6% increase from last year. Average realised price for its beverages rose 0.5% to 57.4 pence.
News by Reuters, edited by Donna Ahern. Click subscribe to sign up for the Checkout print edition.