A.G. Barr has reported relatively upbeat year end results, helped by recent restructuring and moves to reduce the sugar content in its products.
In the year to 28 January 2017, the soft drink group’s pre-tax profit before exceptional items increased by 2.7% to £42.4m with underlying revenue up by 1.5% to £257.1m. Operating margin before exceptional items improved 50bps to 16.8%, boosted by cost controls.
Innovation helped lift performance of its core brands with IRN-BRU sales up 3.2% and Rubicon growing 4.9%.
Chief Executive, Roger White, commented: “We have made considerable progress across the business over the last 12 months and delivered a solid financial performance in volatile and uncertain market conditions.”
He added: “As consumer tastes and preferences continue to change, our recent announcement that 90% of Company owned brands will contain less than 5g of total sugars per 100ml by the autumn of 2017 is a positive demonstration of how the business is responding to consumers’ needs with both pace and commitment.
“The UK consumer environment remains uncertain, however we are confident that our great brands, effective business model, clear strategy and strong team ensure we are well placed to realise the full potential of our business and to deliver consistent long-term shareholder value.”