28th Sep 2021 09:34
(Alliance News) - Soft drinks maker AG Barr PLC on Tuesday reinstated its dividend and declared a special payout after a first-half earnings surge, but flagged that growth will slow for the rest of the year.
Revenue in the six months ended August 1 increased 20% year-on-year to GBP135.3 million from GBP113.2 million. Pretax profit jumped to GBP24.4 million from GBP5.1 million a year prior, when the company recorded GBP11.5 million exceptional charges.
Compared to the first half of the financial year which ended in January 2020, revenue was up 10% from GBP122.5 million, and pretax profit was up 81% from GBP13.5 million.
Shares were down 0.4% to 537.00 pence in London on Tuesday morning.
The Cumbernauld, Scotland-based company, whose brands include Irn-Bru and Funkin Cocktails, reinstated its interim dividend at 2 pence per share. That's only half the 4p per share interim payout in financial 2020, its last before dividends were suspended.
But the firm also declared a special dividend of 10p per share. That reflects one-off income received during the suspension period, including the termination of a franchise deal to make Rockstar energy drinks, compensation for the removal of a wind turbine at Cumbernauld, and sales of distribution depots.
First-half earnings were "driven by a combination of brand-led initiatives and market factors, some long-term and structural and others more one-off, resulting in an unusually high profit performance," Barr said.
The company maintained its full-year forecast for profit slightly ahead of the financial 2020 level - which takes into account cost inflation and supply chain pressure.
Some benefits from the first half, including customer restocking and deferred overheads, will not repeat in the second half, the company added.
In financial 2020, Barr made GBP255.7 million revenue and GBP37.4 million pretax profit.
Chief Executive Roger White said: "AG Barr is a growth-focused business operating in resilient and growing market categories, with dynamic brands, great people and a strong financial position.
"Our positive first half performance reflects these fundamentals as well as the encouraging performance of recent innovation launches in both soft drinks and cocktails."
By Ivan Edwards; [email protected]
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