Shares in Britvic PLC (LON:BVIC) fizzed higher after the soft drinks firm saw its first-quarter revenues rise over 4% driven by strong UK and international sales.
Britvic said its UK sales - which accounted for nearly 60% of total revenues in the three months to December 25 – were up 2.2% to £209.8mln thanks to strong demand for carbonated drinks.
Overall first-quarter revenues were £351mln, up 4.3% on the same stage a year earlier, underpinned by volume growth of 3.9%.
The J2O and Robinsons squash maker added that UK sales growth came from convenience and food service channels, such as restaurant chain, Subway, while sales at the grocery channel remain subdued.
Britvic - which also makes and sells PepsiCo brands such as Pepsi and 7UP in the UK - has recently expanded into the United States, Brazil, Spain, and India.
The firm said its international revenues jumped by 19.8% in the first-quarter with its Fruit Shoot drink boosting sales in the US.
Good start …
Simon Litherland, Britvic’s chief executive, said: "The new financial year has started well with group revenue 4.3% ahead of last year, continuing the good progress we made as a business in the prior year. Encouragingly all our key markets have delivered revenue growth.
“Whilst the external environment remains uncertain, we are confident that the strong execution of our marketing and innovation plans combined with disciplined revenue management and our cost saving initiatives will deliver full year results in line with market expectations."
In early morning trading, Britvic shares were up nearly 4%, or 23p at 612p.
Whitman Howard analyst Chris Wickham pointed out that Britvic “reported a strong start to the year”, although he pointed out that “given the nature of the business, the opening 3 months of the year are its least important trading period.“
In a note to clients, repeating a ‘buy’ rating and 800p price target on the stock, the analyst said: “Britvic’s combination of cash positive growth and strong brands is on offer at what we consider to be a very attractive multiple.”