A.G. Barr said on Tuesday that it expects its full-year revenue and profit to beat market expectations, helped by price hikes and steady demand for its cocktail mixes and beverages.
The company raised prices last year to deal with surging costs and launched new products as it benefited from greater at-home consumption of food and drinks that held even after the pandemic and despite pubs and restaurants reopening.
The maker of the orange fizzy drink Irn Bru forecast revenue of £315 million ($389 million) for the year ended 28 January and said that it expects full-year profit to be slightly ahead of market expectations.
Analysts expect the group to report an annual revenue of £302 million and a pretax profit of £42.6 million, according to company-compiled estimates.
Hit To Consumer Confidence
On the 27 September 2022, the company flagged a hit to its second-half margins on Tuesday, hurt by reduced consumer confidence and increase in costs, after reporting a rise in first-half profit.
The drinks maker is now navigating a rise in input costs and lower consumer spending amid a rising inflationary environment in the UK, which it expects to continue through the year.
"We anticipate in the coming months that the current economic environment will impact consumer purchasing behaviour," said Roger White, chief executive officer of A.G. Barr.
Read More: Irn-Bru Maker A.G. Barr Warns Of Second-Half Margins Hit On Inflation Woes
News by Reuters, edited by Donna Ahern, Checkout. For more A-brand news, click here. Click subscribe to sign up for the Checkout print edition.