Britvic reviewing Counterpoint “low margin” operation here

UK Soft Drinks supplier Britvic has launched a strategic review of its Irish Counterpoint wholesale operation which has been closed for some months now due to Covid-19 which impacted Counterpoint's contribution to its annual results.

The review will examine the business over the coming year according to Britvic’s Chief Executive Simon Litherland who stated, “We are looking at it and looking at our stratetic options for that business.

“It is a margin drag,” he continued, “As you know it’s quite a chunk of revenue but it’s a very low-margin business. And obviously the pandemic has closed on the Irish on-trade massively.”

In its Preliminary Results for the year to the 30th of September, published recently, the company ascribed “an impairment charge” of €9.2 million (£8.4m) relating to the Counterpoint business.

“During 2020 intangible assets, goodwill and PPE relating to the Counterpoint business were impaired,” noted the company which reported sales of over £1.42 billion, a decline of 8.6% (at constant exchange rates) compared to £1.545 billion the previous year.

Pre-tax profits at the UK company were slightly up at £111.2 million with Operating Profits on a par with the previous year at £130.3 million.