25th Jul 2014 08:29
LONDON (Alliance News) - AG Barr PLC said Friday that it anticipates revenue in its half-year to come in higher than its tough previous year comparatives after maintaining value and volume growth momentum in the period.
The company said that it expects half-year sales revenue of GBP135 million, up 5.6% on the previous year, the metrics of which were 5% higher than the prior year's results.
AG Barr said that its growth "continues to be well ahead of the total soft drinks market performance." Citing research data by Nielsen, the company said that for the period January 26 to July 12, 2014, it saw its value increase by 1.6%, whilst volume declined by 0.3%. "Our growth is well balanced across our core brands, all of which have responded positively to increased marketing activities, in the current period," said AG Barr.
With regards to meeting its higher revenue expectations for the half-year, AG Barr said, "We are now in a period characterised by tough year-on-year comparative trading, however recent and current good weather, as well as the execution of a strong sales programme, continue to underpin our trading."
Promotional price competition in the soft drinks sector remains intense however, said the company. Despite investing in increased promotional activity and making incremental marketing investments, AG Barr said its margins remain in line with management's expectations.
The FTSE 250-listed company recently announced its intention to invest further in carton packaging at its Milton Keynes site; on Friday it said that following completion of the consultation process, it is set to progress with this investment and that its Tredegar site in Wales will close in early 2015. "Project plans are now well underway and we continue to work closely with all affected employees at Tredegar," said the company.
Looking ahead the company said that its balance sheet remains strong and that its capital investment plans remain in line with management expectations.
"We anticipate that the soft drinks market across the second half of the year will continue to be highly competitive but we expect to deliver another year of good growth given our sustained investment in brands and innovation, on top of the good progress we are making in executing our annual operating plans," said AG Barr.
The company will report its half-year results September 23, 2014.
Shares in AG Barr were trading 0.68% higher at 627.23 pence per share Friday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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