Britvic’s Profit Declines 25% on Irish Restructuring Costs
Britvic Plc (BVIC), the maker of Robinsons’ fruit drinks, said first-half profit fell 25 percent on restructuring costs at its Irish business.
Net income fell to 15.8 million pounds ($26 million) in the 28 weeks ended April 17 from 21.1 million pounds a year earlier, the Chelmsford, England-based company said today in a Regulatory News Service statement.
Britvic said it booked a one-time impairment charge of 7.5 million pounds for its Irish business. The drinks maker, which had a full-year loss last year as it wrote down the value of its Irish business, said restructuring at the unit has been completed.
Revenue climbed 25 percent to 633.1 million pounds, boosted by earnings from a French acquisition last year. Revenue in Great Britain rose 4 percent, driven by a 6.8 percent second- quarter gain.
Adjusted diluted earnings per share fell to 9 pence from 9.7 pence a year earlier in the 28-week period ended April 11.
“Market conditions remain challenging in Ireland, but the business has performed in line with our expectations,” Chief Executive Officer Paul Moody said in today’s statement. “Trading in the first few weeks of the third quarter provides the board with further confidence in the outlook for the balance of the year.”
Britvic shares rose 6.9 percent, or 1.6 percent, to close at 432.9 pence as of 4:30 p.m. in London, giving the company a market value of 1 billion pounds.
The company proposed an 8.5 percent increase in its interim dividend to 5.1 pence. Group debt climbed to 556 million pounds from 442.4 million pounds a year earlier, the company said.
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