AG Barr, the maker of Irn-Bru, has reported that it continued to grow “well ahead of the market” in the six-month period to date and anticipates half-year sales revenue of c.£127.5m, an increase of 4.9% over the prior year.
It said that its sales growth momentum had increased over the period aided by the improved weather, with second quarter growth anticipated at 9.8%, reflecting the “strong performance of its core brands following a number of successful marketing initiatives” and the positive impact of weather from late June onwards.
There was no mention of its recent aborted merger talks with rival Britvic.
The company said that margins in the period had improved relative to last year, benefiting from the strong performance of new product development and innovation, less volatile input costs, modest improvements to pricing and improved efficiency of promotional investment.
It recently commenced commercial production of cans at its new Milton Keynes facility ahead of its original time plan. The company said that the team at Milton Keynes will now focus on further optimisation and development of this asset as it moves from the initial commissioning phase to increasing levels of output through the second half of its current financial year.
Over the period, the group said that its balance sheet remains strong and that its capital investment plans are in line with management expectations.
It said: “Our core brands continue to respond positively to further investment and development. The soft drinks market has benefited from the recent excellent weather conditions experienced across the UK.
We anticipate that in the second half, regardless of the weather, the market will continue to be very competitive as promotional intensity is expected to mirror the significant activity experienced last year. We have good visibility across our cost base through to the end of the current year as well as strong brand and executional plans which gives us confidence in delivering another strong year.
“We are well positioned to grow and develop our business; we will maintain our focus of investing in brands, developing our infrastructure and building an organisation capable of delivering significant long term future growth.”
