FDBusiness.com

UK soft drink group AG Barr increased profit before tax by 7% to £41.3 million on turnover down by 0.9% to £258.6 million for the 53 weeks ended 30 January 2016. Net margin increased by 14 bps to 16.3%. AG Barr produces and markets some of the UK’s leading brands, including Irn-Bru, Rubicon, Strathmore and Funkin.

AG Barr maintained its market share of total soft drinks in a challenging UK market and grew its international business volume growth of 40%, while continuing to invest in assets, infrastructure and systems.

Roger White, chief executive of AG Barr, comments: “We have delivered a creditable financial performance in difficult market conditions over the past 12 months through continued tight cost control, rigorous cash management, executional improvement and further investment in our brands, assets and people. We delivered a significant change programme across the year which has further strengthened our operational and process capability, providing a robust and flexible platform to underpin our long-term success.”

He continues: “Market conditions in the core UK soft drinks market are not expected to substantially change as we look forward. Top-line growth remains under pressure and changes in consumer preferences offer challenges and opportunities in equal measure. Although the details of the Chancellor’s proposed soft drinks levy are still to be consulted upon, we believe our combination of brand strength, ongoing product reformulation and consumer driven innovation will allow us to minimise the financial impact on the business at the proposed point of implementation in April 2018.”