Soft drinks firm Britvic said today its full-year adjusted core earnings rose 5.1%, but warned that the introduction of a soft drinks tax in Britain and Ireland would create uncertainties in the sector.
Ireland and the UK are set to implement a levy on makers of sugary drinks, a move advocated by health campaigners arguing that fizzy drinks are a source of empty calories.
But the industry is opposing the tax, saying that it will not work and will disproportionately hurt poorer people.
Britvic, which makes Robinsons squashes as well as J2O and Tango drinks, has already been cutting sugar content in drinks.
But analysts have said the company will need to raise prices to cushion the impact from the higher taxes.
Britvic's chief executive Simon Litherland played down the fears, saying the company was well placed to navigate the uncertainties related to the tax.
"94% of our own brands will be unaffected by the sugar levy," he said.
Britvic, whose main markets are Britain, Ireland and France, said adjusted earnings before interest, taxes and amortization (EBITA) rose to £195.5m.
Analysts said that successful management of cost inflation through revenue management and cost control drove EBITDA. The company said its annual profit after tax fell 2.5% to £111.6m.