(Alliance News) - Irn-Bru maker AG Barr PLC on Tuesday maintained its prediction of improved year-on-year profit after reporting "strong" sales in a trading update.
Cumbernauld, Scotland-based AG Barr said it currently expects revenue of GBP134 million in the 27 weeks ended August 1, up from GBP113.2 million in the same period a year prior.
Overall, the company said revenue is likely to rise 18% year-on-year or 13% on a like-for-like 26-week basis.
The soft-drinks manufacturer said a recovery in on-the-go and at-home soda consumption boosted Barr Soft Drinks sales.
Hospitality reopening has restored sales of its Funkin Cocktail range, the company added.
"We plan to increase our brand investment in the second half of the year, building on our progress to date," said Chief Executive Roger White.
"While uncertainty remains, we are confident in delivering our plans across the balance of the year and meeting our recently revised full year profit expectations," White added.
As previously guided, AG Barr expects full-year profit to be slightly ahead of the GBP37.4 million taken in financial 2020.
The company saw its pretax profit decline 30% in financial 2021 to GBP26.0 million from GBP37.4 million the year prior.
AG Barr said it remains committed to resuming dividends in its current financial year, after suspending payouts in April 2020.
Shares in AG Barr were trading up 0.6% at 569.50 pence each in London on Tuesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Barr (A.G.) (BAG)