(Alliance News) - AG Barr PLC on Tuesday reported drops in revenue and profit for the 2021 financial year, as drinks sales were harmed by the pandemic.
Revenue in the financial year ended January 24 fell 11% to GBP227.0 million from GBP255.7 million the previous year. Pretax profit declined 30% to GBP26.0 million from GBP37.4 million.
Barr won't pay a dividend, but said it plans to resume payouts this financial year. The dividend has been suspended since April 2020.
Shares were down 2.7% to 507.13 pence in London.
Barr, whose brands include Irn-Bru and Funkin Cocktails, said it was hit by the loss of hospitality and on-the-go drinks sales as consumers stayed at home. Meanwhile, sales in supermarkets were broadly flat on the previous year.
Profit was hurt by net exceptional charges of GBP6.8 million, which included an impairment to its Strathmore bottled water brand.
The Cumbernauld, Scotland-based company gave a positive outlook, saying it ended the year with a stronger balance sheet and that it is focused on realising the growth potential of its brands as pandemic restrictions are lifted.
John Moore, senior investment manager at Brewin Dolphin, said: "Despite the very tough trading environment, AG Barr has demonstrated its resilience as a business, ending the year with a stronger balance sheet than it did the previous 12 months. Whilst there will be an element of higher investment in the re-opening and recovery phase, the key question will be what the company does with the GBP50 million net cash that has been built up over the course of the pandemic.
"There is a commitment to recommencing dividends in the year ending January 2022, but no firm plans announced. Another option could be to buy back shares at today's level, which would enhance the recovery potential for remaining shareholders. Or, taking a more organic approach, it could acquire another brand to replace Rockstar. Whatever decision it chooses to take, AG Barr is in a strong position to lean into the recovery and start looking at the next chapter for the business."
By Ivan Edwards; ivanedwards@alliancenews.com
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Barr (A.G.) (BAG)