Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Food & drink

Britvic shares fail to fizz to Carlsberg premium due to flat trading update

Wimbledon was once an annual highlight for FTSE 250-listed soft drinks maker Britvic PLC (LSE:BVIC), as its cornerstone squash brand Robinsons basked in the glory of a prestigious sponsorship that dated back more than eight decades.

That partnership came to an end in 2022, but Britvic is in high spirits for another reason this Wimbledon season.

Company shares were lifted another 4.5% today following news of Carlsberg’s successful bid for the group, which also produces Pepsi for the UK market.

It brings Britvic’s share price more than 30% higher in the past month and 50% higher year to date as the market prices in Carlsberg’s premium-sized takeover bid.

However, the rally on Britvic’s shares fell short of its logical conclusion.

Currently trading at 1,263p, the share price has not managed to reach the 1,315p bid price as is common in these situations, with analysts pointing to a concurrent trading update from the soft drink maker.

Group-wide revenues ticked 6.3% higher year on year in Britvic’s third quarter, with ‘other international revenue’, which excludes Brazil, falling 6.6%.

“The market reaction was muddied by an accompanying trading statement from Britvic which showed some revenue weakness.

"As such, the shares did not rise to the obvious bid level, potentially leaving the door ajar for further developments on the proposed acquisition,” said interactive investor’s Richard Hunter.

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK