Soft drink maker Britvic (LON:BVIC) saw share jump over 6 percent on Wednesday, after reporting an 8 percent revenue boost.
The company, which produces drinks including Robinsons squash and Pepsi Co in the UK and Ireland, reported a revenue rise of 8 percent, to £1.54 billion and a 5.1 percent increase in adjusted EBITA to £195.5 million.
Profits fell over the period however, down almost 9 percent to £139 million. Profit after tax decreased 2.5 percent to £111.6 million, feeling the hit of £24.7 million worth of planned costs related to the business capability programme.
Britvic’s revenue from innovation now stands at 5.4 percent, up from 4 percent on last year. Adjusted earnings per share increased by 7.3 percent to 52.9p, resulting in a full year dividend increase of 8.2 percent.
Simon Litherland, Chief Executive Officer of Britvic, commented:
“Britvic has again demonstrated the resilience of our business, delivering another strong set of results. We have grown both organic revenue and margins whilst continuing to progress our strategic priorities. I am particularly encouraged that we have increased the proportion of revenue generated from innovation and accelerated the returns from the business capability programme.
While April 2018 brings uncertainty with the introduction of the Soft Drinks Industry Levy in GB and Ireland, we are well placed to navigate it thanks to the strength and breadth of our brand portfolio and our exciting marketing and innovation plans. This, combined with our continued focus on revenue and cost management, means we remain confident of making further progress next year.”
The company also seems to be making good progress with its efficiency programme, with sales growth remaining upbeat and further margin expansion may be possible. Over the last year the Britvic’s share price has risen 34 percent – a better performance than other global consumer stocks such as Reckitt Banckiser Group Plc, Burberry Group Plc and ASOS Plc.
Shares in Britvic are currently trading up 6.46 percent at 807.50 (1524GMT).