Britvic cheers strong results as it adds two further brands to its drinks cabinet
Britvic this morning announced a positive set of third quarter results for the period ended 30 June, with UK revenue leaping 10 per cent on the previous year to reach £476m.
The largest supplier of branded still soft drinks in Great Britain, which owns brands such as J20 and Robinson’s, also announced the acquisition of two more brands to add to its growing selection – Jimmy’s Iced Coffee in the UK and Extra Power in Brazil.
The FTSE 250 firm called the Brazilian acquisition “synergistic”, adding that it would help expand the brand’s operations and presence in the South American country where revenue was slightly down – by 1.9 per cent – last quarter. Extra Power holds a 42 per cent market share in its core regions near Brasilia according to Britvic.
Jefferies analyst Ed Mundy said both purchases were bolt-on acquisitions that “appear to make strategic sense”.
Chief executive of Britvic Simon Litherland heralded the two acquisitions: “These transactions are aligned to our strategic priorities and provide further opportunities to accelerate our strong growth trajectory.”
Jimmy’s Iced Coffee is, according to Britvic, “the fastest growing RTD iced coffee brand in the segment” and generated a retail sales value of £17m in the year to June – which represents a 43 per cent increase from the previous year.
Commenting on Britvic’s positive quarterly results, Litherland said: “Trading in the quarter has been strong, with revenue increasing 9.9 per cent, driven by positive price/mix and volume growth.
“Consumer demand for our portfolio of leading family favourite brands remains buoyant ahead of the key summer trading period, as we continue to offer consumers great quality and value at affordable prices.”
The brand expects to deliver full year revenue and profit within the range of current market expectations. Its share price was up one per cent this morning.
Jim Cregan, co-founder of Jimmy’s Iced Coffee, added: “We are so delighted with this deal which is the culmination of 12 years of monumental hard work by my sister and I. We have poured our heart and souls into making this business what it is today, and we feel so fortunate that Britvic is now able to take Jimmy’s to places about which we could only dream.”
The two co-owners, siblings Jim Cregan and Suzie Owen, will continue to be involved as ambassadors of the brand.
Britvic operates in Great Britain, Ireland, Brazil and France. It was founded in the 1930s.