A.G. Barr, the soft drinks maker best known for its Irn-Bru brand, has unveiled robust first-half figures, boosted by the hot summer weather and a recovery in demand for its out-of-home products.
In a brief trading update ahead of its full interim results in September, the company said its revenues over the 26 weeks to 31 July had risen by around 19% on a like-for-like basis to about £157m.
The performance followed positive momentum across all its business units – Barr Soft Drinks, Funkin and MOMA. “Our growth has been driven by ongoing brand investment and the successful execution of our pricing and promotional activity,” A.G. Barr said.
It noted that trading had also benefitted from the Covid recovery across the market, particularly in the on-trade and out-of-home sectors.
The company warned that the UK’s current level of inflation would continue through the year, creating tough economic conditions for consumers and industry alike. It stated that it would take action to limit the full-year impact of rising costs.
“While not immune to the current cost inflationary pressures experienced across the UK, looking forward into the second half of the financial year, we remain confident of delivering a full-year profit performance ahead of the prior year and in line with board expectations,” said Chief Executive Roger White.
NAM Implications:
- Tempting for suppliers showing a 19% sales increase on a like-for-like basis…
- …to delay price increases.
- But given 10%+ inflation already in the market…
- …perhaps best to push for realistic CPIs…
- …before they really need it?
