Britvic shares fall on higher costs warning


Britvic shares fall on higher costs warning
Britvic shares tumbled in afternoon trading after the soft drinks maker said it expected raw material costs to rise further.

Shares fell by more than ten per cent on the London Stock Exchange after Britvic said raw material costs are set to increase by 4.5 per cent.

The expected increase is above previous guidance and Britvic said it plans to offset the extra charge through cost cutting.

In addition, the soft-drinks maker said conditions in the licensed on-premise market will remain "challenging" and will deteriorate further.

Pubs are reporting lower drink sales, blaming the fall in consumer confidence and the ongoing effect of the smoking ban.

Chief executive Paul Moody said: "Looking forwards, although we anticipate rising input and energy cost pressures, our strong focus on cost control allows us to remain confident about the delivery of earnings in line with market expectations for the current year."

Britvic reported still drinks sales growth of 7.8 per cent against a market decline of 1.2 per cent.

In carbonates, the company also outperformed the market with volume growth of 2.6 per cent against sector growth of 2.2 per cent, a result Britvic said was driven by a particularly strong Pepsi performance.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure