Britvic posts 10% quarterly revenue decline with slow recovery ahead

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Britvic PLC (LON:BVIC) has posted a 10% decline in quarterly revenue and forecasts a slow recovery based on how coronavirus restrictions are lifted.

The soft drinks producer said the tighter restrictions in the UK and Ireland have put further pressure on sales in both the hospitality sector and on the go consumption, which is expected to continue throughout the second quarter.

READ: Britvic continues to feel COVID-19 pressure

The FTSE 250 group said its performance will continue to be significantly affected by similar adverse channel and pack mix to that seen in the second half of the financial year to end September 2020.

In the three months to December 31, 2020, the first quarter of the company’s current financial year, revenue dropped by a tenth to £328mln, with the UK down 4%, the rest of the world falling 19% but Brazil up 26% helped by a £1.5mln tax rebate.

Britvic chief executive Simon Litherland said the firm will continue with its strategy by rebuilding investment behind its brands, people and environmental initiatives to focus on the medium and long-term potential.

Shares shed 4% to 732.31p early on Thursday.

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