Frucor revenues jump 27 per cent to $228m

Frucor Beverages Group boosted unaudited revenue a whopping 27 per cent to $228.4 million for the June year, the company said yesterday.

Frucor, which listed a year ago, had lowered its profit forecast in May by 35 per cent to $11.4 million, saying sales in Britain were likely to be well below predictions.

The earnings downgrade stemmed from an anticipated $10 million ebitda loss in Britain, where sales of V energy drink were expected to be significantly down on the prospectus forecast of a break-even result.

The company said New Zealand sales accounted for about half the growth, while international earnings rose 67 per cent to $62.2 million.

Revenue has doubled in the past two years.

Frucor said sales growth of 16 per cent was satisfactory in New Zealand given sluggish economic conditions. But sales in Britain continued were "well short of expectation."

The outlook for revenue growth was positive. Australia was the best prospect, with the energy drink market underdeveloped and per capita consumption levels less than half those in New Zealand.

The British market was still seen as a significant opportunity despite the disappointing performance this year, Frucor said.

Recent improvements in distribution had placed V on a footing with its key competitors.

The full-year profit and an update on the company's performance in the British market will be provided on August 14.

The New Zealand business finished the year strongly, with the fourth-quarter market share improving in most categories.

Energy drinks, water and sports drinks all sold well. V continued to increase market share in its fourth year.

Carbonated soft drinks lost ground but were still profitable.

British revenues were affected by high inventories but this could not mask the fact that sales fell well short of expectation, Frucor said.

However, the distribution drive carried out over the past quarter had met its targets, with 47 per cent weighted distribution being recorded in mid-June versus 25 per cent in March.

The use of New Zealand and Australian expatriates in the London distribution drive had helped to lift weighted distribution to 67 per cent in the greater London area, making V second only to Red Bull in sales.

Frucor said the improvements in distribution meant the trend in fourth-quarter sales was encouraging.

South African revenue had grown this year, although new energy drink Play eroded market share during the past four months.

Sales to new markets Hong Kong and Dubai were recorded in May and last month, with retail launches taking place recently.

Frucor achieved 3 per cent growth in sales of fruit juice despite its share of the market shrinking.

- NZPA