AG Barr Delivers Another Strong Financial Performance
AG Barr, the UK-based soft drinks group, has reported a 5.6% increase in total revenue to £279.0 million and a 2.5% rise in profit before tax and exceptional items to £45.2 million for the 52 weeks ended 26 January 2019. However, operating margin before exceptional items at 16.4% was down by 66 bps on the previous year.
Despite the volatile operating environment throughout 2018, AG Barr, which produces and markets some of the UK’s leading drinks brands, including IRN-BRU, Rubicon, Strathmore and Funkin, managed to deliver against its long-term strategy.
Market growth in the UK soft drinks market, as measured by IRI, was characterised by the significant acceleration of value growth ahead of volume, with value up 8.1% and volume up 3.0%. This was especially evident in the carbonates category, where value grew 11.6% and volume increased by 2.7%. With value growth across the UK soft drinks market, the only sub-sector in decline was juice drinks as consumers continue to choose water, flavoured water, functional or traditional carbonates.
Roger White, chief executive of AG Barr, comments: “At the outset of 2018 we set out a clear strategy and specific actions which we believed were required to deliver continued financial success during what we forecast to be a year of significant changes across our industry. I am pleased to report we have delivered another strong financial performance having adapted well to both the circumstances we anticipated and those which were less expected. It is with this backdrop in mind that I emphasise the flexibility and strength of our business model, people and brands, all of which continue to deliver consistently.”
He elaborates: “We have grown revenue by 8.0% and 5.6% respectively over the past two years reflecting the growth potential of our business. Whilst the uncertainty across the UK economy is likely to prevail for the foreseeable future, we have consistently demonstrated over the long-term that our strategy and execution are fit for purpose and resilient. The markets in which we operate are robust and provide us with continued opportunities to grow. We have exciting plans to deliver across the group and are confident of continuing to make further progress in the coming year.”
