UK: AG Barr FY sales boosted by warm UK summer
- FY net profits up 19% to GBP28.3m (US$46.7m)
- Net sales rise 6.9% to GBP254.1m
- Operating profits up 9.1% to GBP34.7m
- FY group volumes rise 5%; Irn-Bru sales up 4.3%
Barr saw a healthy rise in FY profits and sales
AG Barr has seen its sales outpace the UK soft drinks market in 2013 as it reported a healthy rise in full-year profits.
Net profits in the 12 months to the end of the January 2014 climbed by 19% year-on-year to GBP28.3m (US$46.7m), the Irn-Bru producer said today (March 25). The group's sales in the period were up by 6.9% to GBP254.1m, while operating profits rose by 9.1% to GBP34.7m.
Volumes in the full-year also rose, by 5%.
The group saw operating margins increase slightly, by 0.4% to 15.1%, which reflected “improvements in cost-of-goods, well-controlled overheads and positive product sales mix”.
Barr said its performance was boosted by “excellent growth” for its CSDs, particularly Irn-Bru and the Barr brand. The UK soft drinks market was helped by a “generally warm summer” last year, the company said.
However Barr flagged that its still-drinks portfolio had a slower year, growing sales by 2.7%.
Ronald Hanna, Barr's chairman said: “The markets in which we operate have performed relatively robustly, despite the economic-, regulatory- and consumer-related headwinds.”
Hanna branded it an “eventful year” for the company after its failed merger with rival Britvic.
However, chief executive, Roger White added: "The business has benefited hugely from the challenges of the past year, emerging stronger, fitter and more ambitious to develop.”
Looking ahead, he added: “Despite remaining cautious regarding the environment we operate in and the challenges we face, we are confident in our future prospects.”
Shares in Barr this morning were trading up in London by 1.98% at GBP5.93.
AG Barr has acquired UK-based cocktail mixers and syrups firm Funkin in a deal worth GBP21m (US$31.5m). ...
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