Barr(A.G.) PLC Trading Update (8057M)
August 02 2017 - 2:00AM
UK Regulatory
TIDMBAG
RNS Number : 8057M
Barr(A.G.) PLC
02 August 2017
IMMEDIATE RELEASE 2 August 2017
A.G. BARR p.l.c.
("A.G. BARR")
Trading Update
Revenue up 8% and Group on track to meet full year profit
expectations
A.G. BARR, which produces and markets some of the UK's leading
drink brands, including IRN-BRU, Rubicon, Strathmore and Funkin,
today announces a trading update in respect of the 26 weeks ended
29 July 2017.
We are pleased to report a strong first half sales performance
supported by the continued success of last year's new product
launches. Revenue for the 26 weeks ended 29 July 2017 is expected
to be GBP136m, an increase of c.8% on the same period in the prior
year (2016: GBP125.6m).
This strong sales performance was delivered against a market
backdrop that saw value increase by 3.5% and volume by 2.1%
(Source: IRI UK soft drinks market data from 29 January to 18 June
2017).
In the first half we increased our investment in support of our
innovation and brand growth activity. This, combined with slightly
later than anticipated phasing of price increases and generally
higher operating costs, including the effect of weaker sterling on
input costs, had a moderate impact on margins during the
period.
We are making good progress with our sugar reduction programme
and are confident that we will meet the portfolio target
communicated in March 2017. We expect this programme to be
completed by the end of the financial year (January 2018) as the
reformulated products are phased in across the next six months.
Outlook
While the wider economic environment continues to be uncertain,
we have a clear strategy and a strong commercial plan in place, and
we remain confident that we will deliver a full year financial
performance in line with the Board's expectations.
Roger White, Chief Executive Officer, commented:
"We have delivered a good first half with strong sales growth
supported by our successful innovation programme, particularly
IRN-BRU XTRA, which has now been launched in England and Wales, and
Rubicon Spring, which is gaining distribution across multiple
channels. We are well positioned to deliver against our
expectations across the balance of the year."
For more information, please contact:
A.G. BARR 01236 852400 Instinctif Partners
Roger White, Chief Executive 020 7457 2020
Stuart Lorimer, Finance Matthew Smallwood
Director Justine Warren
Next update: Interim Results - 26 September 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
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