AG Barr sees adjusted FY profits at top end of expectations

28th Jan 2020 07:20

(Sharecast News) - Irn-Bru maker AG Barr said full year adjusted profit before tax was expected to be at the top end of current market expectations, "just ahead" of £37m.
Revenue for the period was expected to be around £255m, down from £279m a year earlier.

The company on Tuesday said it had faced a "combination of challenging trading conditions during the year, particularly across the summer period", and had adjusted its promotional and pricing position to align more closely with the market.

"While this had an expected impact on volume, it has delivered an increase in average realised price, re-establishing our consumer pricing position," it added.

Sales of the AG Barr's iconic fizzy drink fell in the first half after a price rise saw a bigger-than-expected fall in volumes.

"We have completed the first phase of our business re-engineering programme. The associated exceptional costs in the period of £1.5m - £2m are expected to be almost entirely offset by a one-off exceptional gain related to the removal of a wind turbine at our Cumbernauld site," the company said.

"The external landscape remains challenging, however we exit the year with encouraging trading momentum which we expect to continue into 2020."