(Alliance News) - Britvic PLC on Tuesday reported first-half earnings growth and announced a new GBP75 million share buyback.
The company, which owns the Robinsons squash brand and licenses the Pepsi fizzy drink product from its eponymous parent PepsiCo, said it is "successfully managing the challenging inflationary environment".
Hemel Hempstead, England-based Britvic said revenue in the six months to March 31 rose 10% to GBP794.0 million from GBP719.3 million a year earlier. Pretax profit improved 17% to GBP69.3 million from GBP59.3 million.
"We have delivered an excellent start to the year, making great progress on our people, planet and performance measures. Our continued focus on lower calorie, healthier drinks has resulted in some standout performances, including Pepsi MAX and Tango in Great Britain as well as Ballygowan 'Hint of Fruit' in Ireland. We have successfully mitigated the impact of the challenging inflationary environment, while continuing to offer consumers great quality and value at affordable prices. Looking ahead, we will be activating a series of exciting marketing and innovation campaigns this summer," Chief Executive Officer Simon Litherland said.
In a sign of confidence, Britvic announced a new buyback of up to GBP75 million worth of shares over the next 12 months. Britvic lifted its interim dividend by 5.1% to 8.2 pence per share, from 7.8p.
"While all companies have faced significant economic uncertainty and considerable inflationary pressures, the soft drinks category continues to demonstrate high levels of resilience. Soft drinks are an affordable staple, offering great quality and value choices for all occasions. We have a portfolio of leading brands enjoyed by millions of consumers. Our strategy is building momentum, and we will continue to invest to unlock growth," the company said.
Shares in Britvic rose 1.1% to 939.00 pence each in London on Tuesday afternoon.
By Eric Cunha, Alliance News news editor
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Britvic (BVIC)