Britvic hammered by recall and weather
Britvic said the recall of its Robinsons Fruit Shoot and Fruit Shoot Hydro drinks could cost the company up to 25 million pounds.
Britvic said the recall of its Robinsons Fruit Shoot and Fruit Shoot Hydro drinks could cost the company up to 25 million pounds.
Added to this, poor weather conditions and weak consumer sentiment means the group now expects to deliver a full year results at the bottom end of market expectations - before taking account of the impact of the recall.
Britvic said it had been unable to quickly resolve issues around a newly designed cap on Fruit Shoot, a popular children's drink.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The bottles were recalled last week "as a precautionary measure...due to a packaging safety issue" the company said at the time.
It will now take Britvic six weeks to start re-supplying customers and up to six months to get distribution back to full speed.
"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," the company said.
"This includes an anticipated impact in 2013 financial year of between £5m and £7m."
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Millions at risk of 'unnecessary' tax bill – how to shield your savingsMillions of Brits could be taxed on their savings interest this year as their savings interest exceeds the personal savings allowance. Are you at risk?
-
Savers will have to wait as long as 48 years to build a £1m cash ISA pot if allowance is cutChancellor Rachel Reeves is rumoured to be planning a cut to the cash ISA allowance in the Autumn Budget, making it harder for savers to build wealth. Will you still be able to build a £1 million cash ISA pot?
