IRN-BRU maker A.G. BARR p.l.c. has seen its statutory pre-tax profits fall by 25% to £13.5 million from £18.2 million.
The Cumbernauld-based drinks manufacturer which also produces Rubicon and Funkin also saw its turnover fall as it announces its interim results for the six months ended 27 July 2019.
Turnover is down just over 10% from £136.9 million to £122.5 million.
Commenting on the results, Roger White, Chief Executive, said :
“Our focus remains on delivering long-term growth. We have plans in place to address our specific brand related challenges and are ensuring that the business is appropriately scaled to perform in the current market. Despite continuing economic uncertainty we expect to meet the revised profit expectations communicated in July.”
John Moore, senior investment manager at Brewin Dolphin, said: “Investors were spooked earlier in the year by the normally reliable AG Barr’s profits warning. Following the announcement, the share price dropped nearly a third – but today’s update should provide some reassurance that there has been no further deterioration. The weather hasn’t been kind to the business this year and the soft drinks tax has caused issues too, leading to a sales drop on a comparative basis; but, to be fair, AG Barr had a particularly good run last year making it a tough comparator. Crucially, there is also a clear plan of action for its Rockstar and Rubicon brands, which have had their problems and were a catalyst for the profits warning. Perhaps the most important indicator of management’s view of the long term is the rise in dividend and continuation of the share buyback programme – they suggest the bad news this year could be a temporary blip and AG Barr is back on track.”