AG Barr annual profit rises but warns about lack of fizz in the market

24th Mar 2015 08:18

A strong performance from its main brands drove annual profit higher at soft-drink producer AG Barr.The FTSE 250 group said that its profit on ordinary activities, before tax and exceptional items, increased by 10.0% to £41.9m, as all the group's core brands - IRN-BRU, Barr, Rubicon and Strathmore - outperformed the market.Total turnover rose 2.7% to £260.9m, while stripping out the impact of the loss of the Orangina, the metric grew 3.3%.Group chief executive Roger White said the group remained focused on a cost-control strategy designed to deliver long-term growth, though he warned that market conditions were set to remain challenging.Earnings per share rose 4.6% to 28.3p, while full year dividend rose 10% to 12.12p."The UK soft drinks market is currently experiencing a period of price deflation which will, if sustained, make it more difficult for many businesses to deliver the top line growth of recent years," he said.Despite a slow start to 2015, White said he remained confident in the company's ability to deliver growth this year.His view was shared by analysts at Shore Capital, who reiterated their 'hold' rating on the stock, suggesting that the group's strong track record placed it in a strong position."We continue to anticipate Barr to deliver another year of profit growth amidst a challenging market environment but given the perceived level of market risk," they said.AG Barr shares were down 2.91% to 657.29p at 08:40 on Tuesday.