A.G. Barr Sees Turnover Decline 2.8% In H1
Drinks group A.G. Barr, which produces Irn-Bru and Rubicon (among other drinks brands), has posted a 2.8-per-cent decline in turnover for the first six months of 2015.
Turnover for the six months to 25 July stood at £130.3 million, down from the £135.7 million posted in the same period last year, according to results released on 22 September.
Adjusted profit on ordinary activities before tax, interest and exceptional items increased by 3.3 per cent, to £17.8 million.
"Market conditions across the first half have been difficult and are forecast to remain so," said Roger White, A.G. Barr chief executive. "The business is responding well to the market challenges, but the weather since we last updated the market in July has been poor and, although we have recovered some sales momentum, it is not yet at the run rate we have targeted."
White added that the business is likely to see the benefits of an improved operating platform as it enters 2016.
Commenting on its performance, analyst Phil Carroll of Shore Capital Stockbrokers said, "We are reassured to see management continues to invest in its brands, such as Irn-Bru, where it has been developing sponsorship plans with both the English Football League and the Scottish Professional Football League, following on from the successful sponsorship of Super-League Rugby, driving increased brand recognition with a core consumer segment. The brand also continues to be well represented in the social-media and digital channels."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.