28th Jul 2020 10:14
(Alliance News) - AG Barr PLC on Tuesday said it expects a single-digit revenue decline, with the drinks maker reporting mixed trading during the UK Covid-19 lockdown.
For the 26 weeks ended July 25, AG Barr expects revenue to fall around 7.8% to about GBP113 million from GBP122.5 million a year ago.
After an "encouraging" first eight weeks of the financial year, the UK entered into lockdown on March 23, forcing pubs and bars to close in a bid to stem the spread of Covid-19.
"We entered a period of significant trading volatility, initially characterised by consumer stockpiling and then a general shift towards larger, less frequent take-home purchasing. We were also exposed to the complete closure of the hospitality sector as well as a material reduction in the "out of home" consumption of soft drinks," the company said.
"While these shopping and consumption patterns continued throughout the 'full lockdown' period across April, May and June, we believe sales benefited from the favourable weather during this time. As lockdown measures have recently started to ease, we are seeing sales in the hospitality and 'on the go' consumption segments beginning to recover, albeit slowly."
For the three months between April and June, revenue fell about 12% year-on-year, AG Barr noted.
The company, which besides Irn-Bru also has the Rubicon fruit juice brand in its portfolio, expects an annual revenue slip between 12% and 15%. This forecast assumes the UK will not enter into another nationwide lockdown.
The stock was trading 0.9% higher at 437.00 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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