Britvic sees profits fall but toasts sales jump

Britvic on Wednesday revealed a drop in profits after rising costs hit the soft-drinks giant behind Tango.

The FTSE 250 drinks-maker said it experienced underlying cost inflation in the 28 weeks to April 16.

It blamed the higher cost of ingredients, including sugar, thanks to the weaker pound since last year’s vote to leave the EU.

Pre-tax profits fell 7% to £50.1 million, partly owing to costs for restructuring logistics operations in the UK and Ireland.

Britvic boss Simon Litherland was more upbeat as he revealed full-year performance is expected to be in line with forecasts.

Sales rose 11.5% to £756.3 million in the first half, and Litherland noted strong demand for fruity energy drink Purdey’s — advertised by actor Idris Elba.

He said Britvic continues to work on healthier products. By next year, 94% of the firm’s brands will be exempt from an incoming sugar tax. New goods it has launched recently include a Robinsons drink called Refresh’d.

The firm has also promoted John Daly, who chairs the remuneration committee, to group chairman, effective from September. He replaces Gerald Corbett.

Shares in Britvic climbed 19p to 722p.