Britvic plc ("Britvic")
Update Statement Re: Robinsons Fruit Shoot and Fruit Shoot
Hydro Product Recall
and Current Trading
11 July 2012
We announced last week the recall of all Robinsons Fruit
Shoot and Fruit Shoot Hydro packs featuring the new design
cap.
Britvic today announces that despite our ongoing
investigations, we have been unable to speedily
resolve the issues regarding the new design cap. Therefore
we have decided to re-supply with an alternative in-market
proven sports cap, in the short term. As a result we will
start to re-supply customers in six weeks, with a gradual
increase to enable us to meet historic levels of demand
within six months.
It is difficult to be precise as to the full
financial implications given the developing
situation.
In addition to the previously guided cost of the
consumer recall, the now extended period of absence from
the market along with a restriction on available cap
production capacity of up to six months results in a
material financial change. We believe this will now have
an impact on the group profit before tax in the
region of £15m to £25m across the current and next
financial year. This includes an anticipated impact in 2013
financial year of between £5m and £7m.
There will be an additional negative impact on
working capital which will reverse in 2013.
As previously announced, this recall does not affect
Fruit Shoot in the USA, Australia or Republic of
Ireland. Fruit Shoot My-5 is not being recalled.
No other Robinsons products are affected.
Current Trading
In May we reported that the UK soft drinks market and
our trading had been adversely affected by poor weather
conditions and weak consumer sentiment. Since then
trading conditions have not improved and the group now
expects to deliver a result for the current financial year
that is at the bottom end of market expectations, before
taking account of the impact of the Fruit Shoot
recall.
A further update on results and trading will be
provided with the group's Q3 IMS which is scheduled to
be released on 19th July 2012.
For further information please contact:
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Investors:
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Rupen Shah / Steve Nightingale
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+44 (0)1442 284 330
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Media:
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Mike Smith/Nick Cosgrove (Brunswick)
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+44 (0)207 404 5959
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Susan Turner
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+44 (0)7808 098579
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