AG Barr on track to meet full-year targets

27th May 2014 07:15

- Interim revenue up five per cent- John Nicolson to replace Chairman Ronnie Hanna after he retires- Confident of delivering on full-year targetsSoft drinks maker AG Barr announced Chairman Ronnie Hanna will retire in December this year as it increased revenue by 5.2 per cent in the 15 weeks to May 11th and said it is on target to deliver guidance for the year. The Scottish soft drink manufacturer said the increase in revenue compares favourably to the soft drinks market, as measured by Nielsen, which recorded value growth of 1.9% and volume decline of 0.6% over the period up to and including 10 May 2014. "Our core brands are responding well to increased marketing support and sustained consumer promotional investment, whilst our strategy of extending distribution continues to make good progress," the Irn-Bru maker said."In the period, the increase in revenue has been underpinned by a strong volume performance across all of our core brands. Margins are in line with management expectations."AG Barr said the macroeconomic climate had improved in recent months but the retail and consumer environment remained volatile and competitive."Our operating plans for 2014 are well established and we are confident in our ability to execute them well. Although it is early in the year and the comparative trading for last summer will be challenging, we remain confident in delivering our expectations for the balance of the year," it added.The group, which earlier this year confirmed it still had ambitions to expand the business after last year's failed merger with Britvic, said its balance sheet remained strong. There have been no significant changes in the financial position of the group since its last trading update in January.Non-Executive Director John Nicolson will assume the role of Deputy Chairman with immediate effect and will take on the role of Chairman when Hanna steps down at the end of the year.CJ