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Britvic third-quarter sales fall as lockdown bites

By Michele Maatouk

Date: Wednesday 22 Jul 2020

Britvic third-quarter sales fall as lockdown bites

(Sharecast News) - Soft drinks maker Britvic reported a drop in third-quarter revenue on Wednesday as it took a hit from the coronavirus lockdown.
In the three months to the end of June, revenue fell 16.3% on a constant currency basis to £328.9m, while year-to-date revenue was down 5.1% to £1.03bn.

"As anticipated, and previously communicated in our interim results, Covid-19 has impacted performance," it said, adding that "significant" declines in out-of-home consumption were partly offset by strong growth in at-home consumption, resulting in market value share gains across its business units.

In March, Britvic estimated the impact of full coronavirus restrictions on adjusted EBIT in 2020 would be between £12m and £18m a month, net of mitigating actions. It maintained this guidance on Wednesday, noting that while the hospitality industry has begun to reopen, it is too early to judge the impact this will have on the business.

Chief executive Simon Litherland said: "As expected, Q3 demonstrates the full market impact of the Covid-19 lockdown.

"I am pleased with both the market share gains and the performance across the channels open to us, however in the near term there remains a high degree of uncertainty about the pace and level of full recovery. Looking further ahead, I am confident that the strong momentum we built up going into the pandemic will return, and that our long-term strategy will continue to create value for all our stakeholders."

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