Strong sales

AG Barr to pay special dividend as market recovers

Irn-Bru Commonwealth

The firm said the market was re-adjusting

Soft drinks firm AG Barr is re-introducing dividends and has announced a special payout to shareholders following a number of one-off cash inflows outside normal trading.

The company will pay an interim dividend of 2p per share (2020/21: nil) payable on 29 October to shareholders on the register on 8 October. A special dividend of 10p per share will also be payable. 

In a half year statement it said trading has been strong across both business units, Barr Soft Drinks and Funkin, resulting in an “unusually high profit performance”.

The company admitted some vulnerability around the driver crisis. “In recent weeks we have seen increased challenges across the UK road haulage fleet, associated in part with the COVID-19 pandemic, impacting customer deliveries and inbound materials. 

“In addition, the risks associated with the wider labour pool and the current COVID-19 pandemic response are areas we continue to monitor closely.”

For the 27 weeks ended 1 August the group delivered revenue of £135.3m, up 19.5% on the prior year.  On a like-for-like basis, excluding the extra week of trading, revenue was £128.5m, an increase of 13.5%.

Statutory profit before tax in the period was £24.4m (2020/21: £5.1m).

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