AG Barr Delivers Solid First Half Performance

 Breaking News
  • Carlsberg Group Upgrades Full Year Operating Profit Outlook Carlsberg Group has delivered organic operating profit growth of 17.7% for the first half of 2019 with reported growth of 18.2% to DKr 5.17 billion (€693 million). Organic net revenue growth was 4.2% and on a reported basis net revenue rose by 6.5% to DKr32.99 (€4.42 billion). Operating margin improved by 160bp to 15.7%. Reported net [...]...
  • Diageo Forms New Rum Joint Venture Diageo and Corporación Cuba Ron, a leader in the production of premium Cuban rums, have created a joint venture – Ron Santiago. The joint venture will have exclusive global distribution rights to Santiago de Cuba, a premium Cuban heritage rum brand. Globally, premium and above rum segments are growing ahead of the category overall, with premiumisation [...]...
  • Stirring Times For US Yogurt – Innovation is Vital in a Changing Consumer Environment Over half of all U.S. consumers now buy yogurt as part of their typical grocery basket, according to a new report from Innova Market Insights, but their habits appear to be evolving. Convenience themes are becoming increasingly important, for example, with 17% of consumers naming this as a significant choice factor in 2018, which is [...]...
  • FrieslandCampina Significantly Expands its VLOG Production Due to the sharp increase in demand in Germany, FrieslandCampina is increasing the number of participating dairy farms that supply VLOG milk from 400 to more than 600. All VLOG milk produced by Dutch FrieslandCampina dairy farmers is used to make cheese for the German market. VLOG (Verband Lebensmittel Ohne Gentechnik) is a German association responsible [...]...
  • English Food Manufacturers Sign Up to Made Smarter Support A number of food manufacturing firms in the North West of England have signed up to a business-led programme which aims to use digital technology to boost growth and success. By implementing advances in data analytics, Artificial Intelligence (AI), Augmented Reality (AR), Industrial Internet of Things (IIoT), 3D-printing and robotics, firms can enhance their profitability [...]...

AG Barr Delivers Solid First Half Performance

AG Barr Delivers Solid First Half Performance
September 27
09:45 2018

AG Barr has delivered a solid first half financial performance during a period of substantial volatility in the UK soft drinks market. Group revenue grew by 5.5% to £136.9 million for the six months ended 28 July 2018, underpinned by a strong volume growth performance of 7.2%, reflecting the resilience of the UK-based soft drinks group’s core brands and its success in growing market share during this time of change.

Profit before tax and exceptional items increased by 4.0% to £18.2 million. Statutory profit before tax was £18.2 million against £19.4 million in the corresponding period of 2017, which included the exceptional gain from a property disposal.

AG Barr produces some of the UK’s leading drink brands, including IRN-BRU, Rubicon, Strathmore and Funkin.

According to AG Barr, retail pricing increased across the UK market following the implementation of the Soft Drinks Industry Levy (SDIL) in April 2018. During the first half, the total UK soft drinks market grew value by 7.7%, while volume increased by only 3.8%.

Against this backdrop, AG Barr’s core brands performed well in the first half as the group delivered strong volume share gains within the total soft drinks market with volume share increasing by about15%, driven by good performances from IRN-BRU, particularly in England and Wales.

Following the successful execution of its reformulation programme, AG Barr continues to invest significantly behind its core brands, with particular emphasis on IRN-BRU, Rubicon and Strathmore. The group’s long-term innovation programmes are continuing, specifically IRN-BRU XTRA and Rubicon Spring, and new products have been brought to market including Street Drinks by Rubicon.

Roger White, chief executive of AG Barr, comments: “We have delivered a solid financial performance in the first half of the financial year, navigating through the Soft Drinks Industry Levy implementation, reformulation, extremes of weather and CO2 shortages in addition to a dynamic consumer, customer and macro-economic environment. Our core brands have performed well and have good momentum with both consumers and trade customers.”

He adds: “We will continue to ensure our actions and investment decisions support our long term growth strategy. We plan to invest further across the second half of the financial year which we anticipate will have a moderate impact on margins.  We remain on target to meet our profit expectations for the full year.”

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here