IRN-BRU owner AG Barr overcame the summer washout to report a big rise in profits and promised “exciting brand launches” in the coming months.
The Cumbernauld-based soft drinks giant hiked pre-tax profits by 12.6% to £27.8 million in the 26 weeks ended July 20, underpinned by strong trading across the group. Revenue climbed by 33.2% to £210.4m, with the company benefiting from the integration of energy drink brand Boost Drinks and oat milk maker MOMA Foods into the Barr fold.
Barr lifted profits and revenue despite persistent pressure from cost inflation, which as previously flagged to the city led to reduction in operating margin over the period.
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The company told the city that it had not passed the full impact of cost inflation on to customers “in order to remain focused on offering consumers great value, affordable brands in an uncertain and challenging economic environment”.
And it Barr reiterated its expectation of delivering a “full-year profit performance marginally above the top end of analyst consensus”, as announced in August, despite the “extended period of poor weather across the summer”.
Chief executive Roger White, who will step down from his role and retire from the group within the next year, said: We have made significant financial and strategic progress in the first half and have exciting plans in place for the balance of the year to sustain our growth momentum.
"We remain confident in delivering a full year profit performance in line with our recently increased market expectations and are well positioned to deliver strong shareholder returns for the long-term.”
The company declared an interim dividend of 2.65p per share, a 6% rise on the prior year.
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