Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

AG Barr sees FY profit 'slightly ahead' of market expectations

(Sharecast News) - Irn Bru maker AG Barr said on Thursday that full-year profit was set to be "slightly ahead" of previous market expectations after a strong performance in the second half. In an update for the year to 28 January, the company said it expects revenue to be up around 26% on the year at £400m, or 7.6% higher on a like-for-like basis, excluding the contribution from the Boost Drinks business bought in December 2022.

Meanwhile, adjusted pre-tax profit is expected to be around £49.5m, up 13.8% on the year and slightly ahead of previous market expectations.

Barr said that despite the wet summer weather in the third quarter, its "positive underlying brand momentum" ensured a strong performance in the second half.

In the soft drinks category, which includes Irn Bru, Rubicon and Boost, inflation in the wider market continued to drive value growth but impacted volumes in the sector, it said. "However, our brand building and pricing strategy delivered both value and volume growth, ensuring we continue to offer consumers great tasting and affordable brands," Barr said.

Meanwhile, Funkin Cocktails enjoyed a strong performance in the fourth quarter, particularly in the off trade. Barr said that while the on trade channel remains variable, with late night venues experiencing reduced footfall, reports of improved festive trading for a range of hospitality venues is encouraging.

In MOMA Foods, there was further double-digit sales growth, supported by new business wins, mainly in the speciality coffee channel.

Chief executive Roger White said: "All our teams across the group have worked hard to deliver an excellent overall performance. This has been supported by continued brand investment, strong execution of our sales plans and progress across our supply chain improvement programme. We have positive momentum behind our brands and business as we enter the new financial year.

"This strong trading performance, coupled with the benefits already being delivered by our margin rebuild programme, has ensured we close the year with a strong profit performance and confidence in the group's long-term growth strategy."

Share this article

Related Sharecast Articles

Unilever to cut third of office roles in Europe - report
(Sharecast News) - Unilever is reportedly planning to cut a third of all office roles in Europe by the end of next year, as the company's new chief executive forges ahead with his plan to boost growth at the struggling consumer goods giant.
BHP and Vale ink deal on UK group action for 2015 Brazil dam breach
(Sharecast News) - Iron ore miner Vale has agreed to pay half of any awards to claimants as part of the UK group action against BHP for the 2015 failure of the Fundao dam in Brazil.
JP Morgan reports big jump in Q2 revenues and profit, but cautions on tail risks
(Sharecast News) - JP Morgan posted big increases on both its top and bottom lines, even as its boss continued to call attention to the potential risks on the horizon.
Months of AT&T call records exposed in data breach
(Sharecast News) - American telecoms giant AT&T revealed on Friday that the call and text logs of its customers were hacked between May and October 2022, and said that at least one person has been arrested.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.