Britvic’s ‘outstanding performance’ driven by new growth brands

Soft drinks firm Britvic has revealed what it describes as an ‘outstanding performance’ in its latest financial results for the year ended 30 September 2024.

The major name posted £1.9b in revenue for the financial year, a 9.5% increase from 2023’s £1.7b.

Likewise, profit after tax rose 1.8% to £125.8m from last year’s £124m.

Britvic cited the growth as being driven by both price/mix and volume, including a strong demand for brands such as Pepsi, Tango, Lipton, MiWadi and Ballygowan, with their revenues collectively rising by 5.5%.

The company has also successfully scaled plant-based milk and shots brand Plenish, Jimmy’s Iced Coffee, Aqua Libra water and London Essence soda in fast-growing categories.

Plenish’s revenue surged by a massive 101.6% compared to last year, while London Essence’s British revenue was up by 37.6%. The latter brand also added more than 50 new hospitality channel contracts including Center Parcs, Barons Pub Company and the Belfry.

Britvic acquired Jimmy’s Iced Coffee last summer to enable access to the fast-growing cold/hot drinks category, and during the year added a 380ml BottleCan and a multipack format to complement the existing pack range. The firm added listings in channels including hospitality and wholesale, driving brand value growth of 15.0% in the last 26 weeks.

The company’s overall performance in Britain was strong in its latest financial year, however the retail channel delivered volume growth while hospitality was weaker.

In August, Britvic invested in its supply chain, completing a £25m upgrade investment in its national distribution centre in Lutterworth, Leicestershire. The facility now houses 17 new automatic cranes, 18 despatch lanes and 20 automated cars, enhancing capacity to move 600 pallets an hour.

Simon Litherland, chief executive of Britvic, said: “We have delivered another excellent financial performance this year, with strong growth across our markets and portfolio of market-leading brands. We have also continued to ensure the business is fit for the future, adding more capacity, investing in our people and significantly increasing investment in marketing and innovation.”

Britvic is in the process of a £3.3b merger with Danish brewer Carlsberg. Litherland added: “Subject to approval from the regulatory authorities, we anticipate that the acquisition by Carlsberg will complete in the first quarter of 2025. I am confident that the prospects for our brands and people are extremely positive, and I look forward to them going from strength to strength.”

The Competition and Markets Authority is carrying out an inquiry into the transaction, considering whether the combined enterprise would “result in a substantial lessening of competition” within UK markets.

It will announce whether it will refer the merger for a phase two investigation by 18 December.