UK: AG Barr sees H1 sales lift, despite tough market
AG Barr said it is expecting to reveal sales of GBP123m in the first-half
AG Barr has said that it expects to report a 3.5% increase in first-half net sales, despite "increased competitive activity and unfavourable weather patterns".
For the six months to the end of July, the Irn-Bru maker said it is expecting to reveal sales of GBP123m (US$201m). The increase has been fueled by a resilient soft drinks market, the company said in a trading update today (28 July). This has resulted in an increase in volumes by 1% and value by 6%, it added.
"AG Barr has performed consistently and in line with our expectations across the first half of the year," AG Barr said. "Overall, our sales momentum is increasing and, despite difficult market conditions in June, the business has performed well in July building on the growth experienced earlier in the year."
Collins Stewart analysts said the update highlights "a resilient performance" in the first-half.
"Having increased prices at around half the rate of the overall market, AG Barr has been able to avoid the deep discounting and heavy promotional activity that has been witnessed across the overall market," the analysts noted. "This has not only underpinned a robust margin performance but a) supports the group's strategy of building value behind its brands over the long term and b) enhances the group's value proposition across its range ."
AG Barr will publish its full financial results for the first half on 27 September.
Click here to view the trading update.
In the second part of just-drinks' review of 2011, Michelle Russell looks at how the soft drinks category has fared in the last 12 months....
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