Britvic's Irish division, which owns the Ballygowan and Club Orange brands, has reported zero profits for the six months to April 12th, down from £4.3 million (€4.8 million) a year earlier.
Revenues rose 1.6 per cent to £101.1 million as the company said, despite being adversely affected by the economic slowdown in Ireland, it was well-placed to take advantage of the eventual upturn in the Irish soft-drinks market. In underlying euros revenues were down 13.8 per cent.
Sales of soft drinks in supermarkets were up 4 per cent over the period while sales in the “convenience and impulse and licensed markets were down 15 per cent and 20 per cent”.
The company noted that its sales in the Republic had been depressed by foreign exchange differences between the North and South, “with increased imported volumes from GB and Europe evident”.
The company said it remains cautious the remainder of this year and 2010 and said it sees “no evidence at present of any upturn in the Irish soft drinks market”.
To cut costs Britvic Ireland said earlier this year it would reduce its workforce 145 people.
The company employs approximately 940 staff at sites in Dublin, Cork, Limerick, Waterford, Donegal and Belfast although this will fall to about 800 following the redundancies.
The company expects to secure cost savings of €27 million by the end if 2011. Investment in new production facilities means the company can now manufacture its Robinsons range in Ireland.
Paul Moody, chief executive of Britvic Ireland, said the company had delivered “strong increases in revenue, profit before tax and earnings against the backdrop of very challenging economic conditions”.
He expects revenues in the second half to be in line with the first half and that the company was confident of meeting full-year expectations.
Britvic Ireland’s brands include Ballygowan, 7UP, Club and Mi Wadi.
Its parent Britvic Group said today its fiscal first-half profit was unchanged as convenience-store volume was down in Ireland due to the recession. Pretax profits rose 16.3 per cent to £20 million.
Net income was £4.9 million, or 2.2 pence per share, in the 28 weeks ended April 12th, matching the figures from the same period a year earlier, the Chelmsford, England-based company said.
Revenues were up 6.3 per cent to £483.2 million with operating profits up 1.6 per cent at £31.9 million.
