AG Barr is confident of sales growth for its full-year

AG Barr is confident of sales growth for its full-year

AG Barr has said it expects to see full-year sales growth of around 2%, despite the volatile state of the UK soft drinks market.

In a trading update today, the Irn Bru producer said its full-year revenues are likely to come in at around GBP259m (US$394m) and that it is on course to meet its financial expectations for the year. The company said its performance in Q4 - the three months to 25 January - has been “well ahead” of the market, with sales growth of around 5%.

AG Barr had reported a 3.5% rise in nine-month sales, despite a slight slip in Q3 revenues. 

“All core brands have performed well across the year in what has been a period of low market growth in soft drinks,” the North Lanarkshire, Scotland-based company said.

“Despite the underlying performance, the market has at times been volatile, with periods of intense competitive trading activity, as brand owners and retailers across varied channels fought for market share.”

The firm reported that it has taken action to “proactively manage costs across the business” to protect margins, without giving further detail.

Looking ahead, AG Barr said it is “cautiously optimistic” for the new fiscal year and expects to see growth, “despite the challenging operating environment and market conditions”.

Shares in the group this morning were trading up slightly at GBP6.35

The company will report its full-year results on 24 March.