The implementation of the deposit return system for beverage containers in February led to a slight decrease in sales volume at Britvic’s Irish operations, the UK-based beverage corporation acknowledged on Wednesday. Despite this, the company, which owns Ballygowan, demonstrated a solid performance in the initial half of its fiscal year.
The brand, which distributes Pepsi and 7U, claimed that the return rates for the scheme were higher compared to those seen during the rollouts in other European nations of similar size. The scheme led to a minor 1.3% fall in sales volume in the half-year ending in March, with a decrease from 190 million litres the previous year to 187.5 million litres, as disclosed by Britvic in Wednesday’s interim results.
The scheme-related setup costs amounted to £1.2 million (€1.4m) during this duration. The company commented that while the scheme’s launch has impacted the volumes marginally, it’s premature to assess the complete effect, although such changes have previously levelled out over time in other markets.
Despite the minute drop in sales volumes, the firm owning MiWadi saw its Irish revenue rise from £74 million the prior year to £79 million in the current financial year’s initial six months. The dip in volume was balanced by product mix and pricing adjustments.
Fast forwarding, the group made a net profit increase of over 10% to £59.9 million. The corporation, which also manufactures and distributes Lipton Ice Tea in the UK and Ireland, experienced an 11.2% revenue surge, amounting to £880.3 million during this period, with the adjusted gross earnings (before deductions) rising 11.7% to £100.4 million.
CEO Simon Litherland expressed his pleasure at Britvic’s impressive performance in the first half. He said their leading growth resulted from the powerful performance of their popular large-scale brands, combined with the rapid growth seen in Brazil and in other new markets such as Aqua Libra and Plenish. Brand investment increased over 38% during this period.
The company announced its £75 million share buyback scheme, marking the third instance in recent years, supported by robust earnings and a positive outlook.
Mr Litherland expressed his certainty that the team is poised to present a robust annual performance.