AG Barr Delivers Consistent Broad-based Sales Growth
AG Barr, which produces and markets some of the UK’s leading drinks brands, including IRN-BRU, Rubicon, Strathmore and Funkin, increased profit before tax by 4.2% to £44.9 million on revenue up 8.0% to £277.7 million for the 52 weeks ended 27 January 2018. Profit before tax and exceptional items rose by 4.0% to £44.1 million compared to the previous year but operating margin before exceptional items decreased by 60bps to 16.2%.
Strong core brand trading and the continued successful innovation drove accelerated growth across the company’s soft drinks portfolio, allowing it to significantly outperforming the overall market in both volume and value terms.
All of AG Barr’s core brands grew in both value and volume terms across the year with IRN-BRU sales up 8.0% – the biggest ever year of sales for the brand, Rubicon sales up 5.3% and Funkin sales up 25%
AG Barr has a strong innovation pipeline for 2018 and 99% of its portfolio is now out of the scope of the soft drinks industry levy. During the year, the company successfully delivered the PET investment at its Milton Keynes site.
AG Barr also recently agreed a new long term strategic partnership with Bundaberg Brewed Drinks, best known for its Ginger Beer in Australia, in addition to the partnership with San Benedetto, Italy’s leading soft drinks producer, concluded earlier in the year.
Roger White, chief executive of AG Barr, comments: “Over the past 12 months we have delivered consistent broad-based sales growth across our portfolio, well ahead of the soft drinks market performance throughout the year, supported by successful innovation, strong core brands and further development of our partnerships. 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. 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.”
