Drinks group Britvic grew revenue and volume in the year to October 2nd, but Irish markets continued to drag on the business.
The company said its British, French and international business units delivered positive volume and revenue growth, but Ireland held back group growth.
Revenue for the fourth quarter of the year was 8.4 per cent lower in Ireland, and fell by 9.6 per cent for the full year. Volume was 6.8 per cent lower in the fourth quarter, and showed a drop of 8 per cent for the year.
The group blamed the decline on a shrinking drinks market here, which has been further hit by challenging macro-economic conditions and disappointing weather. The overall market continued to contract in the fourth quarter of the year, with volume decreasing by 5.6 per cent in take home and value down by 5.1 per cent.
“Relatively stronger performance in the grocery channel has negatively impacted actual realised price (ARP), despite the successful implementation of a price increase and margin accretive innovation launched this year,” Britvic said.
In the British and international divisions, ARP was 2.1 per cent higher on average. Revenue grew by 2.7 per cent for the full year in the British sector, with carbonates putting in a particularly strong performance at 8.3 growth. Stills revenue was 5.2 lower, with volumes also falling as the weaker economy hit consumers.
The total soft drinks market in Britain grew in the fourth quarter, with volume up 2.1 per cent and value rising 6.9 per cent. However, the carbonated category considerably outperformed stills.
On an international basis, revenue was 12.8 per cent higher for the year, with Britvic noting “very encouraging progress” with its franchise operations.
“Our GB, French and International business units have delivered positive volume, price and revenue growth in the full year, despite the continued challenging economic backdrop and poor weather over the summer period. Conditions in Ireland remain difficult,” said chief executive Paul Moody. “We expect to deliver full year results in line with our expectations for the group in 2011.”
