(Alliance News) - AG Barr PLC on Tuesday said it anticipates a drop in revenue for its recently ended financial year, but profit to come in ahead of market expectations.
For the year ended January 24, the Cumbernauld, Scotland-based soft drinks maker expects revenue to decrease by 11% to GBP227 million from GBP255.7 million the year before, although this is slightly ahead of the revised guidance issued in July, which was for a 12% to 15% drop.
In addition, the operating margin before exceptional items for the year is anticipated to be in line with the prior year, leading to pretax profit before exceptional items being ahead of market expectations.
For AG Barr's prior financial year, pretax profit before exceptional items was GBP37.4 million.
AG Barr noted that in the first four months of its second half, trading was at the upper end of its scenario plans. However, a resurgence in Covid-19, and the renewed restrictions in the UK as a result have started to have an effect in the hospitality and "drink now" categories.
"I am pleased with the performance we have delivered against a very difficult backdrop which further demonstrates the underlying resilience of our people, business and brands. We expect the months ahead to be challenging for everyone however I remain confident in our ability to navigate these very uncertain times," said Chief Executive Roger White.
AG Barr will publish its annual results on March 30.
Shares in AG Barr were up 0.9% at 501.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Barr (A.G.) (BAG)