24th Mar 2015 08:39
LONDON (Alliance News) - AG Barr PLC Tuesday reported higher pretax profit and revenue for its last financial year, as its key IRN-BRU, Barr, Rubicon and Strathmore brands all grew and outperformed the broader market, particularly the Strathmore water brand.
The soft drinks manufacturer said pretax profit rose to GBP38.6 million in the half, compared with GBP34.3 million a year earlier, as revenue rose to GBP260.9 million, from GBP254.1 million, and margins increased as it cut overheads, improved its supply chain and as input costs fell. It closely-watched pretax profit excluding exceptional items rose to GBP41.9 million from GBP38.1 million.
It will pay a final dividend of 9.01 pence per share, up from 8.19 pence a year before, bringing the total dividend for the year to 12.12p, up 10% on the year.
Chief Executive Roger White said he expects market conditions to remain challenging going forward, with the UK soft drinks market "experiencing a period of price deflation which will, if sustained, make it more difficult for many businesses to deliver the top line growth of recent years".
"Whilst our year has started slowly, reflecting tough comparative trading and promotional phasing, we are confident that our management actions, combined with our proven business model, will enable us to further unlock the significant potential that A.G. BARR offers its shareholders this year and into the future," White said.
AG Barr bough Funkin Ltd in early February, a deal that moved it into the cocktail mixer market for the first time.
"This is a small but significant step into a new, high growth sub-category of the drinks sector. It also provides further incremental growth potential for the Group, both in the U.K. and internationally, as well as the opportunity to enhance our position in the on-trade and hotel, restaurant and café hospitality market segments," the company said.
Still, AG Barr shares were trading down 2.9% at 657.29 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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