THE Irish crisis drained the fizz out of drinks manufacturer Britvic’s share price yesterday, although it recovered to close at 476p, down only 2.9 per cent after what many viewed as drastic overselling in the morning that saw it dip down to a low of 449p.
Although the firm’s Irish exposure demands some caution, its other numbers were reasonably solid and in line with expectations.
And it showed spritely progress on integrating its recently acquired French business, keeping it far from its last tango in Paris.
Analysts were generally positive about the results, with Moody’s chief executive Paul Moody saying that Britvic’s experience was not unusual for a company affected by the sovereign crisis.
The price could see a prolonged dip due to raw materials inflation impacting the bottom line, but overall, the figures show an ability to grow despite a difficult environment, with overall pre-tax profit growth of 21.5 per cent.
Investors should keep a wary eye on progress in Ireland and play the price carefully, but any sharp selling should nonetheless represent a good buying opportunity.