Robinsons and J2O owner Britvic sees 50% jump in profits as it raises prices to combat costs

Britvic, the parent company of Robinsons squash and J2O soft drinks, has reported a 50% jump in its half-year profits while also cautioning over a decrease consumer spending amid the cost-of-living crisis.

In the six months to March 31, the soft drinks giant reported a 18.5% increase in revenues to £719.3 million.

Pre-tax profits also increased to £59.3 million, up from £39.8 million a year prior, with sales through retailers continuing to grow, up 4.4% year-on-year across the country.

According to Britvic, drinks bought for “immediate consumption” had now bounced back ahead of pre-pandemic levels. Trade overall across bars and restaurants recovered also further.

READ MORE: Britvic names Elly Tomlins as new chief people officer

However, the group revealed it had increased prices at the start of the year in a bid to offset soaring costs, but added that inflation was only partially mitigated in the six month period.

“The current geo-political uncertainty is likely to result in continued cost inflation and pressure on consumer spending at least into 2023,” Britvic CEO Simon Litherland said.

“I remain confident however that we will continue to successfully navigate the headwinds.”

The group added that despite “soft drinks are not immune to changes in consumer spending, both the category and Britvic’s leading family favourite brands have historically shown themselves to be resilient” to wider economic turmoil.

Britvic also revealed plans to increase shareholder returns, unveiling a £75 million share buyback programme and upping its dividend by 20% from 6.5p per share to 7.8p per share.

As a result, Britvic said it had seen strong trading continue into April, with double-digit revenue growth year-on-year.

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