Irn-Bru maker A.G. Barr on Tuesday posted a rise in its first-half profit, helped by strong demand for its cocktail mixes, soft drinks and price hikes of its products.
Beverage makers have raised prices to keep up with high costs of energy and raw materials, while a cost-of-living crisis has not limited customers from spending on cocktail mixers.
Annual Profit Expectations
Despite the wet summer months of July and August, the Cumbernauld-headquartered group maintained its annual profit expectations of marginally above the top end of analysts' forecast.
Analysts on average expect A.G. Barr to report an annual profit of £47.12 million, according to a company-compiled consensus.
In March, the company noted that high inflation and the planned introduction of the Scottish Deposit Return Scheme (DRS) in August 2023 had potential to impact consumer purchasing behaviour, CEO Roger White said in a statement.
Consumers in Scotland will pay a 20 pence deposit under the scheme when they buy a drink in a single-use container, which then get back when they return the empty bottle or can.
Most beverage companies have hiked prices in a bid to pass on some of the costs to their consumers.
CEO Steps Down
A.G. Barr noted in August that its CEO of 19 years, Roger White, will step down in the next 12 months, with A.G Barr noting that a formal succession process is in progress.
White, 58, leaves at a time the UK firm has benefited from higher pricing, as well as strong trading performance across its soft drinks divisions.