Britvic plc Update-Robinsons Fruit Shoot and Current Trading (3785H)
July 11 2012 - 2:00AM
UK Regulatory
TIDMBVIC
RNS Number : 3785H
Britvic plc
11 July 2012
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 GBP15m to GBP25m across the current and next financial
year. This includes an anticipated impact in 2013 financial year of
between GBP5m and GBP7m.
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:
Investors:
Rupen Shah / Steve Nightingale +44 (0)1442 284 330
Media:
Mike Smith/Nick Cosgrove (Brunswick) +44 (0)207 404 5959
Susan Turner +44 (0)7808 098579
This information is provided by RNS
The company news service from the London Stock Exchange
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