TOP NEWS: AG Barr Profit Grows As Irn-Bru Has "Biggest Ever" Sales

27th Mar 2018 09:04

LONDON (Alliance News) - Soft drinks maker AG Barr PLC said on Tuesday that revenue and profit rose for its recently ended financial year, and it raised its dividend as a result.

Shares in AG Barr were up 3.7% at 638.00 pence early Tuesday, making it the best performer in the FTSE 250.

The Irn-Bru maker said revenue rose 8.0% to GBP277.7 million for the year ended January 27 from GBP257.1 million the year before, as pretax profit climbed 4.2% to GBP44.9 million from GBP43.1 million the year prior.

Before exceptional items, pretax profit came in at GBP44.1 million compared to GBP42.4 million the year earlier.

The FTSE 250-listed company proposed a final dividend of 11.84p per share, up from 10.87p the year before, bringing its total payout for the year to 15.55p, an increase of 8.0%.

During the year, the company said Irn-Bru sales were up 8.0%, "the biggest ever year of sales" for the brand, while Rubion sales rose 5.3% and Funkin sales up 25%.

Energy drink Rockstar had an "exceptional" year, with sales up 14%, while Snapple "lost ground" as a result of retailer range rationalisation in a small number of European markets and some supply issues across the second and third quarters

Strong core brand trading and "continued successful innovation" accelerated growth across the soft drinks portfolio, AG Barr said, resulting in the firm "significantly" outperforming the market.

"The UK economic landscape is expected to remain uncertain for business as a whole, with regulation, changing customer dynamics and consumer preferences adding further volatility for the soft drinks industry," said Chief Executive Roger White

"We have a strong and flexible business model and a growing portfolio of brands, both established and nascent, which reflect the requirements of today's changing consumers. We remain confident in our ability to capitalise on the opportunities to grow our business and deliver long-term value to shareholders," White added.

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