AG Barr toasts profit growth

28th Mar 2011 07:35

Scottish soft drinks maker AG Barr served up a 13.3% increase in full year pre-tax profit, after a strong performance across its core brands, and remains confident of building on momentum despite the competitive environment and cost pressures.The maker of Iron Bru said profit on ordinary activities before tax and exceptional items increased to £31.6m for the 12 months to 29 January 2011 from £27.9m the same time a year earlier. Total turnover rose to £222.4m during the period from £201.4m before. Underlying earnings per share increased by 14.9% to 61.2p.On a cautionary note AG Barr commented, "The soft drinks sector will face tough comparative trading across 2011, as well as further cost volatility and general economic uncertainty. However, we face these challenging conditions with good momentum, a well invested business, excellent operational plans and a strong financial position." Sales in the first eight weeks of the new financial year were up on the same period last year despite surging food and oil prices."The challenges of cost inflation which almost all manufacturers are facing are creating headwinds, however we remain positive on both our immediate and longer term prospects," the firm added.Group net debt was reduced to £16.6m from £22.1m the prior year.A final dividend of 18.66p per share has been proposed, making a dividend for the year of 25.41p per share, up 10% from the same time last year.