AG Barr on course for full-year targets

23rd Jan 2014 07:41

- Expects to hit full-year targets - Volatile consumer demand and weather patterns - Confident of future growth despite tough market Soft drinks maker AG Barr said trading remained strong in the final quarter of the financial year and it expects full-year revenue of around £252m, reflecting year-on-year growth of 6.1 per cent. In an update ahead of the financial year ending January 26th 2014, the Scottish maker of Irn-Bru said it is still on target to meet its full-year expectations and expects to outperform the soft drinks market despite what it described as "volatile consumer demand and weather patterns." Total revenue in the final quarter is expected to be ahead of the prior year by around 5.5%. "AG Barr has delivered a consistent and robust performance in a marketplace characterised by volatile consumer demand and weather patterns, in addition to the ongoing economic challenges faced by consumers and a tough competitive environment. "Looking forward, although it is unlikely that these challenges will materially change, we remain optimistic that the combination of our well-invested operating platform, strong balance sheet, proven business model and capacity for growth leave us well positioned to continue to deliver long term shareholder value."The group, whose other brands include Rubicon and Strathmore waters, said underlying margins have improved from the previous year. However, planned increases in marketing and promotion capped further margin progress in the final quarter.Cash-flow generation and balance sheet have remained strong, with the expected year-end net debt position was better than previously anticipated, it added.CJ