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Irn-Bru Maker A.G. Barr Warns Of Second-Half Margins Hit On Inflation Woes

Irn-bru maker A.G. Barr has 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.

A.G. Barr, however, added that it continues to see full-year profit ahead of the prior year helped by cost control measures and growth in sales.

The company, which increased its interim dividend by 25%, reported an adjusted profit before tax of £25.3 million ($27.36 million) for the 26 weeks ended 31 July,  compared with £20.6 million a year ago.

'Strong' First Half 

On 28 September, A.G. Barr delivered a strong first half performance and recommencement of dividends, its latest financial results show.

According to the soft drinks firms interim results for the 27 weeks to 1 August, the record first half profit reflects positive underlying volume momentum.

The company, best known for Scottish fizzy drink Irn-Bru, said that its full year operating margin is expected to be slightly ahead of the prior full year.

In December last year, the fizzy drinks maker announced that it bought a 60% stake in porridge and oat milk maker MOMA Foods as it forays into the fast-growing plant-based milk sector.

Read More: Irn-Bru Maker A.G. Barr Resumes Dividend After Bumper Annual Profit

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.

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