November 30, 2016 / 8:42 AM / 2 years ago

UPDATE 1-British firm Britvic posts higher earnings on Brazil expansion

(Adds forecast, background, shares)

Nov 30 (Reuters) - British soft drinks firm Britvic said its full-year adjusted core earnings rose 8.4 percent, mainly as the company expanded its business in Brazil and on better sales in the UK.

The company also said it was confident that its 2017 results would be in line with market expectations, even as it faced possible higher taxes from new regulations in the United Kingdom and Ireland and uncertainty caused by the EU referendum results.

Shares of the company were up about 5 percent at 574.5 pence at 0809 GMT on the London Stock Exchange.

Britvic has been one of the most outspoken challengers to the UK’s proposed taxation on high sugar content products and has been actively reducing the sugar content in its offerings.

Adding to the company’s woes was the sterling’s fall after the EU referendum results, which the company expected to put pressure on its input costs in Britain.

Around one-third of the group’s raw materials used in the UK are purchased in euros and dollars.

The pound has lost 18 percent against the dollar and 15 percent against the euro since the June 23 referendum.

Sales in Britain, which accounted for nearly two-thirds of Britvic’s total revenue in the third quarter, rose about 3 percent, helped by strong demand for Pepsi, Pepsi Max, 7UP and Tango brands among its carbonates.

The Robinsons squash maker, whose main markets are Britain, Ireland and France, said it earned pre-exceptional EBITA of 186.1 million pounds ($232.14 million) on revenue of 1.43 billion pounds for the year. ($1 = 0.8017 pounds) (Reporting by Rahul B and Vidya L Nathan in Bengaluru; Editing by Subhranshu Sahu and Sunil Nair)

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