11 July 2012 – trading update
The company has provided further information on the Robinsons Fruit Shoot and Fruit Shoot Hydro product recall. Britvic has decided to re-supply with an alternative in-market proven sports cap in the short term. It will start to re-supply customers in six weeks, with a gradual increase to enable historic levels of demand to be met within six months.
The wet weather has also had an impact and performance in the current financial year is now expected to be at the bottom end of market expectations, before taking account of the impact of the Fruit Shoot recall. An interim management statement is due on 19 July. We feel that the fall in the company’s share price is overdone and rate Britvic as a BUY.