AG Barr, the soft drinks company, says it expects total revenue in Q4 to be c5.5% ahead of the previous year.
The Irn Bru producer forecast full-year revenues to be c6.1% ahead at c£252m.
“This performance [in Q4] is particularly pleasing given the tough prior year comparatives which saw near double digit growth in the second half of last year,” the company said.
“Our core brands continue to respond positively to our ongoing investment and development actions despite the increased intensity of price-driven competition in all of the major trade channels. Underlying margins have improved versus the prior year however planned increases in levels of investment in marketing and promotion have capped further margin progress in the final quarter.”
The company, which was last year subject to a mooted merger with Britvic, said the operational performance of the business has been “strong throughout the financial year”, with “excellent customer service delivered during periods of peak demand in the summer and across the Christmas trading period”.
“This has been supported by the addition of the new site at Milton Keynes where commissioning of the plant and the logistics transfer programme are now complete, in line with the expected project timescales.
“Over the period our free cashflow generation and balance sheet have remained strong, with the expected year-end net debt position better than previously anticipated.
“AG Barr remains on course to meet its expectations for the financial year ending 26 January 2014.”
The company added: “AG Barr has delivered a consistent and robust performance in a marketplace characterised by volatile consumer demand and weather patterns, in addition to the ongoing economic challenges faced by consumers and a tough competitive environment.
“Looking forward, although it is unlikely that these challenges will materially change, we remain optimistic that the combination of our well-invested operating platform, strong balance sheet, proven business model and capacity for growth leave us well positioned to continue to deliver long term shareholder value.”
