A.G. Barr keeps full-year guidance after first-half revenue rises 8.5%

  • A.G. Barr retained full-year guidance after first-half revenue increased 8.5%.
  • £36.1 million was adjusted pretax profit, up 2.6%, for the 26 weeks to Aug. 1.
  • Supply-chain problems reduced summer sales by £10 million before availability began normalising.

A.G. Barr retained its full-year guidance after revenue for the 26 weeks to Aug. 1 rose 8.5% to £247.4 million, despite supply-chain and third-party manufacturing problems that reduced summer sales by £10 million. The company said delivery disruptions and weaker shelf availability were linked partly to its capability and capacity change programme and partly to external manufacturing issues. Stock availability and customer service normalised in the second half after most of the Cumbernauld operational changes were completed, while a Milton Keynes manufacturing upgrade remained on track. Adjusted pretax profit rose 2.6% to £36.1 million, while statutory pretax profit fell 3.7% to £33.9 million because of one-off Fentimans integration costs. Fentimans and Frobishers contributed to growth, although weakness in FUNKIN and Barr Brands weighed on performance. Operational investment, acquisition spending and cost inflation linked to the Middle East affected margins, with some costs not fully passed on to customers. A.G. Barr continues to expect about 10% full-year revenue growth, a 15% adjusted operating margin and adjusted return on capital employed of about 19%.

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