Revenue up 4%
Irn-Bru maker ‘gaining momentum’ after tough first half
AG Barr, the soft drinks group, said sales were “gaining momentum” after a weak first half. Revenue rose 3.9% in the 18 weeks to 28 November compared to the equivalent period last year.
Year to date revenue from the ongoing business, as at 28 November, declined by 0.2%. Year to date revenue on a reported basis declined by 2.2%.
“As anticipated, our revenue performance in the third quarter has gained momentum as we put the specific challenges of the first half behind us and return to our long-term growth strategy,” said the maker of Irn-Bru in a trading update.
The firm said that despite continued difficult market conditions it had maintained market share. Margins remain in line with expectations, underpinned by ongoing tight cost control activity.
The balance sheet remains strong and there have been no significant changes in the financial position of the company since the publication of the interim accounts in July.
“We continue to deliver against our operational investment and efficiency programme. The warehouse expansion project at our Milton Keynes site is nearing completion and good progress is being made on the production capability projects at both Milton Keynes and Cumbernauld, which will provide increased flexibility and support future innovation opportunities.”
“We are now entering the important festive trading period and we anticipate the marketplace will remain highly competitive. However our sales execution activities are well developed and, as previously stated, assuming satisfactory Christmas trading, the company remains on track to meet the board’s expectations for the year.”