Shareholders in Britvic might be getting a case of acid reflux. The rebound in demand caused by a reopening of bars, restaurants and society as a whole has been tainted by industry shortages of carbon dioxide and higher supply chain costs. The soft drinks maker’s forward valuation has receded from its record high in July, with the share price falling by just over a tenth. But if investors have to stomach some immediate pain, they shouldn’t balk at the idea that Britvic can rediscover some of its fizz.
Some margin impact is inescapable. Haulage driver shortages, rising aluminium and polyethylene terephthalate prices and pressure on CO2 supplies led Jefferies, the broker, to downgrade its forecast for earnings before interest and taxes this year
