Britvic annual profit falls 19 percent
UK based soft drink maker, Britvic has recorded a fall of 19 per cent in the annual profit mainly due to an expensive recall of Fruit Shoot children's drink and a wet summer season in the UK.
Britvic said that its profit before tax fell to the level of 84.4 million pounds for the year till September, 2012 compared to 105.1 million pounds in the previous year. The company, which is the maker of Tango and Robinsons, has recently agreed upon its merger with a smaller competing firm, A. G. Barr in a deal valued at 1.4 billion pound.
Britvic also has the rights to make and sell Pepsi products in Britain and Ireland. The company said that it recorded gains through a string market for carbonates in the UK and an increase in market share. However, the gains were eroded mainly due to the pricy recall of Fruit Shoot drink due to faulty caps.
The company estimates that the recall would cost 16.9 million pounds during this year about 8 million in 2013. The recall resulted in a 0.8 percent fall in company's revenues to 1.26 billion pounds. It impacts the company's operations in the UK and France while its business in Ireland continued to face difficult market conditions due to tougher economic conditions.