Britvic Reduces Forecasts on Poor U.K. Sales, Fruit Shoot Recall
Britvic Plc (BVIC), the maker of Robinson’s fruit drinks, said full-year results will be “at the bottom end” of analysts’ estimates and will be hurt additionally by losses linked to a recall of its Fruit Shoot products.
Business conditions haven’t improved since May’s first-half results, the Chelmsford, England-based company said today, citing unseasonably wet weather and “weak consumer sentiment.” Losses from the Fruit Shoot recall will reduce pretax profit by about 15 million pounds ($23.3 million) to 25 million pounds this financial year and next, it said in a statement.
The projection for profit to miss estimates doesn’t include the impact of the Fruit Shoot recall, Britvic said. The beverage maker was anticipated to report pretax profit of 106.2 million pounds this year, according to the average estimate of 12 analysts surveyed by Bloomberg.
Britvic said July 3 it started to recall Fruit Shoot and Fruit Shoot Hydro packs in the U.K. because of safety concern over new packaging. The drinks, aimed at children, had a “small number of damaged caps,” which could have come detached, it said at the time. The shares fell 8.2 percent last week.
The company has been unable to “speedily” resolve the issues, and will start to resupply products in six weeks with a previously tested stopper. Britvic had previously estimated a reduction in profit of 1 million pounds to 5 million pounds this year as a result of the recall.
The company will release third-quarter trading and further details on July 19, it said today.
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