Sales at Britvic slumped by more than 5% in the past three months, as the company was hit by a double-whammy of the Fruit Shoot recall and wet summer weather.
The recall of Fruit Shoot – first announced on 3 July – contributed two percentage points to the decline.
The rest of the fall – covering the three months to 8 July – was blamed on the poor weather, described by Britvic chief executive Paul Moody as “very disappointing”.
Britvic said it would cut capital expenditure for 2012 to £50m – down from previous forecasts of £72m. The soft drinks maker blamed the Fruit Shoot recall, which is now estimated to cost it as much as £25m.
“Given the challenging environment in the UK and Ireland and the concerns that have been raised given the magnitude of the Fruit Shoot recall, we feel the shares are best avoided for the time being,” said Panmure analyst Damian McNeela.