Strong UK sales for Pepsi Max and 7UP helped soft drinks giant Britvic (BVIC) deliver a 4.3% increase in revenue to £351m in the trading quarter running up to Christmas. Overall volumes rose 3.9%, but it is the group's UK fizzy drinks unit, GB Carbonates, that impresses the most, revenue up 5.5% thanks to firm sales.
That's despite average selling prices drifting lower, primarily because of channel and pack mix, Britvic says.
Britvic’s still drinks division, which includes Robinsons and Fruit Shoot, declined 3.8% over the same period, although management believes it shows ‘signs of an improving trend.’
Investors like the overall picture bidding the share price 4.2% higher to 614p.
Its international division has bounced back strongly from last year's 13.8% decline, increasing 19.8% first quarter on first quarter, with Fruit Shoot proving very popular in the US and European lowlands.
In Brazil, revenue is 7.9% higher but this is due to price hikes of approximately 17% as rising costs are passed onto the consumer, resulting in lower volumes.
Management says the acquisition of Bela Ischia is on track to be completed by the end of March, which will deliver significant cost synergies.
‘The group has seen growth in all its keys markets and is confident its marketing and innovative plans, combined with disciplined revenue management and cost-saving initiatives, will keep it on track to meet full-year forecasts’ says AJ Bell investment director Russ Mould.
Britvic returned to growth in the year to 31 October 2016, after modest overall declines in 2015, and is hoping to continue that trend in the current 12 months. But its cautionary nod to an 'uncertain' trading environment means little can be taken for granted.