|Delayed - 11/27 01:00:00 pm|
PepsiCo : Britvic sees annual profit ahead of market view, extends PepsiCo partnership
|10/20/2020 | 03:11am|
(Reuters) - British soft drinks maker Britvic said on Tuesday it expects annual adjusted operating profit to be slightly ahead of market expectations, helped by the reopening of the hospitality sector and as more people consumed its drinks at home.
The company also said it has reached a 20-year agreement with PepsiCo for the production, distribution, marketing and sales of the U.S.-based firm's carbonated soft drinks, including Pepsi, 7UP and Mountain Dew, in Great Britain.
The agreement extends a partnership that began in 1987 and would also give Britvic responsibility for the Rockstar energy drink, which PepsiCo acquired earlier this year in a $3.85 billion (3 billion pounds) deal.
Shares in Britvic were up 3.2% at 775 pence in early trade.
The company, however, said fresh lockdown restrictions and lower capacity in the hospitality sector due to social-distancing measures would continue to have an impact on its performance in 2021.
Bars, restaurants, cinemas and other public spaces were allowed to reopen in July following months of restrictions, but a second wave of coronavirus infections prompted the government to introduce fresh curbs last month, including the early closure of pubs.
Analysts expect Britvic to report an adjusted operating profit of 160.9 million pounds for fiscal 2020, according to a company-compiled consensus.
The company, whose brands include Tango, J2O, Fruit Shoot and Teisseire, also said it intends to make all of its plastic bottles from 100%-recycled plastic by the end of 2022.
(Reporting by Tanishaa Nadkar in Bengaluru; Editing by Aditya Soni)