Heatwave keeps Britvic sales buoyant
The Irish arm of drinks company Britvic has seen its revenue grow 11% year-on-year in the three months to July 8.
The performance was driven by the exceptionally warm weather, the company said in a trading update. Overall, the firm reported third quarter revenue of £366.9m, an increase of 3.4% on the previous year.
However, excluding the soft drinks industry levy, revenue decreased by 0.6% in the three-month period as the drinks industry as a whole battled a shortage of carbon dioxide in the UK and Ireland.
The impact of the carbon dioxide shortage meant the group - which has brands including Club Orange and Ballygowan Water - had to reduce promotional activity of fizzy drinks during the warm weather.
Year-to-date reported revenue at the group increased 4.2%, or 2.8% excluding the soft drinks industry levy in the UK, to £1.1bn.
Chief executive Simon Litherland said: "Britvic has delivered a strong underlying performance in the third quarter.
"Whilst the industry-wide shortage of carbon dioxide held back our ability to fully capitalise on the exceptional weather in Britain and Ireland, we leveraged the breadth and strength of our portfolio to moderate the impact. Consequently, we remain confident of achieving market expectations for the full year."
Britvic said that the supply of carbon dioxide had now normalised, enabling the group to start rebuilding stock levels and gradually reintroduce promotions.
In Britain, revenue increased 8% - or 1.9% excluding the soft drinks industry levy. Sales of the company's still drinks range jumped 11.7%.