Britvic Essay

776 Words4 Pages
Ratio Analysis From 2006 to 2007 Britvic’s net profit rose by 0.3% while gross profit fell by 1.05%, therefore production cost was reduced, which can be due to the deal with C&C (Magners cider maker) and the acquisition of Ballygowan water which brought a cost saving of €14m. Over the past 5 years, 2010 achieved one of its highest gross profit 55.3% and net profit was never so high at 7%. The deal with C&C also made Britvic’s share prices raise and it reached its highest price (399p) over 2 years period. As many companies, Britvic in 2008 was also affected by the global economic crisis and in that year gross profit fell by nearly 8% but net profit was not affected as much. Britvic’s pubs trade was also affected by the recession, company shares fell to its low in 5 years, reaching 222.25 p, a difference of 165p comparing with previous year. In 2008, still feeling the traces of the financial crisis and alert to the changing attitudes in consumer behaviour, Britvic secured exclusive bottling agreements with PepsiCo for V Water and Gatorade in Great Britain. It has also launched and re-designed its packages of squash range, increased large pack production facility, which “unlocked our ability to drive a large-pack performance through increased promotional competitiveness”. Due to these changes, Britvic’s ROCE rose by 3.5% on that year. On Britvic’s liquidity ratios, the most visible trend is that the lines on current and quick ratio are always working in accordance with each other. As liquidity ratios express the ability that a company has to repay its short-term financial obligations, its almost impossible to talk about Britvic’s liquidity ratios without mentioning the world economical crisis. In 2007, just before the economic crisis, Britvic’s liquidity ratios were one of the highest recorded, current ratios t 3.1:1 and quick ratios at 2.9:1. In 2008, due to the

More about Britvic Essay

Open Document