Shares in Britvic were up on the FTSE 250 in morning trading after the drinks company reported a slight dip in pre-tax profit in the half year ended 17 April.

Revenue in the period jumped 25.3 per cent to £633.1 million, while pre-tax profit dropped 0.4 per cent to £27.7 million.

The group's business in France reported revenue of £117.4 million.

Net debt at the end of the period increased from £442.4 million to £556.0 million, while the group said it would be raising its dividend 8.5 per cent to 5.1 pence per share.

Paul Moody, Chief Executive of Britvic, said, "Britvic has again delivered a solid set of results. Our GB business performed well, with a particularly good second quarter, which saw revenues increase by 6.8% over the last year, and a strong performance in carbonates.

"Our International business also grew strongly, driven by the successful roll-out of Fruit Shoot in Australia, and growth in our US presence. Our management team in France has driven excellent revenue growth and remains focused on achieving the cost synergy targets. Market conditions remain challenging in Ireland, but the business has performed in line with our expectations, and we have successfully completed the restructuring programme.

"Our input cost inflation guidance for the remainder of the year is unchanged. We are focused on executing a strong programme of innovation and brand activity throughout the group and trading in the first few weeks of the third quarter provides the board with further confidence in the outlook for the balance of the year."

Keith Bowman, Equity Analyst at Hargreaves Lansdown Stockbrokers, commented, "Management is today attempting to restore tarnished confidence in the group's prospects. Despite falling profitability, the dividend has been raised (+8.5pc), with price increases expected to recoup at least some of the profit margin going forward. The group's global footprint has continued to be expanded, product innovation remains a focus, while group market share for the take home products has held steady.

"Nonetheless, the challenges ahead remain significant. Elevated commodity prices continue to pressure margins, while customer disposable income remains constrained across a number of important markets - a fact evidenced by consumers trading down to more value orientated mixers across the pub and club market.

"However, on balance, the positives have outweighed the known negatives, with the shares responding positively in early trade. International expansion, significant cash flows underpinning an attractive dividend and broader health trends all weigh in the company's favour, with market consensus opinion currently denoting a strong hold."

By 08:25 shares in Britvic were up 1.88 per cent on the FTSE 250 to 434.00 pence per share.

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