Britvic shoots higher despite looming sugar tax

Soft drinks giant Britvic is behind brands such as Purdey's

Joanna Hodgson29 November 2017

Shares in Britvic fizzed higher on Wednesday after the soft-drinks giant behind Robinsons squash and Tango posted a sales rise and said it was “prepared” for the government’s looming sugar tax.

Boss Simon Litherland admitted the new levy on makers of sugary drinks due next April “brings uncertainty” to the industry.

But he said that, by that point, 94% of Britvic’s brands will be exempt from the levy.

Litherland added that the firm has been focusing on no and low-sugar goods for some time.

The FTSE 250 manufacturer revealed revenue in the year to October 1 rose 7.7% to £1.5 billion.

It was helped by strong demand for its energy drink Purdey’s in London. That helped offset a weaker final quarter in the UK for the Fruit Shoot brand due to bad weather.

Pre-tax profits fell 9% to £138.8 million after one-off costs linked to manufacturing.

The shares rose 56.5p to 815p.