Partly Cloudy

Partly Cloudy

max temp: 9°C

min temp: 5°C

Search

Essex: Fruit Shoot recall hits annual sales and profits at Britvic

PUBLISHED: 08:39 27 November 2012 | UPDATED: 08:50 27 November 2012

The recall of Fruit Shoot bottles earlier this year has hit annual sales and profits at Britvic

The recall of Fruit Shoot bottles earlier this year has hit annual sales and profits at Britvic

Archant Norfolk Photographic © 2007

SOFT drinks company Britivic confirmed a slide in profits today following the recall earlier this year of newly-designed bottles for its Fruit Shoot products.

Britvic, which also owns the Robinsons, J20 and Tango brands, reported a 19% fall in profits for the year to September 30 to £84.4million.

The decline relected a £16.9m hit to cover the cost of recalling bottles of the children’s drink and spin-off Fruit Shoot Hydro in July due to safety concerns over faulty caps.

However, Britvic, which recently agreed a £1.4billion merger with Irn-Bru owner AG Barr, said it was on track to achieve production levels in line with historical demand by January 2013 as previously hoped.

For the year to September, total group volume was 2.1bn litres, down 1.6% on last year, while revenue was 0.8% down to £1.3bn.

The reduction in revenue was also primarily due to the Fruit Shoot recall which hit the group’s still drinks performance in the UK, France and other International markets. The product recall impacted revenues by around 2%, Britvic said.

The fizzy drinks division in the UK, which includes a lincence to produce Pepsi products, was hit by greater competitive activity in the period. However, Britvic did increase its share of the soft drinks market.

Britvic, which recently relocated its head office from Chelmsford to Hemel Hempstead but still has a factory at Widford, just outside Chelmsford, and others at locations including Norwich, kept its full-year dividend unchanged at 17.7p.

It has also proposed a special interim dividend of 10p per share, conditional upon the merger with AG Barr becoming effective.

Paul Moody, Britvic chief executive, said: “This has been a difficult year for the group and the progress that we made was more than offset by the impact of the Fruit Shoot product recall.

“Additionally, the negative macro-economic trends, leading to weak consumer confidence and the cold, wet summer endured across most of our markets, weighed heavily on the soft drinks market and Britvic within it.”

The Britvic and AG Barr merger was agreed earlier this month and will lead to the creation of one of Europe’s leading soft drinks firms with annual sales of more than £1.5bn.

Britvic shareholders will own 63% of the new company, to be called Barr Britvic Soft Drinks, with AG Barr holding the rest. The deal is still subject to shareholder approval.

Wayne Brown, an analyst at Canaccord Genuity, said while the results from Britvic were ahead of expectations this “should not cloud what has been a poor year for the group”.

Search hundreds of local jobs at Jobs24

0 comments

As the UK leaves the EU, there will be trade-offs to make when it comes to immigration. Put simply, there are public concerns about immigration – but significant further restrictions to movement will come at a cost to investment and jobs, the delivery of strong public services and economic growth.

The University of Suffolk will be offering higher and degree apprenticeships for the first time from June – a move which business leaders say will mark Suffolk as a driving force in skills and leadership.

A team from Jackson Civil Engineering will feature in a battle against time in tomorrow’s final episode of a six-part TV series taking a behind-the-scenes look at the operation of the M25.

BT has been given a £42m fine by the telecoms watchdog and is expected to pay out £300m in compensation to rivals over delayed high-speed cable installations.

Wholesaler Booker will update on trading on Thursday amid mounting calls for a competition inquiry into its £3.7 billion merger with supermarket giant Tesco.

Management Jobs

Show Job Lists

Most read

Most commented

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24