Last checked at 4 Dec 2014 07:00
4 DECEMBER 2014
A.G. BARR p.l.c.
Trading Update
A.G. BARR p.l.c., the soft drinks group, today announces its trading update covering the period from 28 July 2014 to date.
Revenue for the 18 weeks to 30 November 2014 decreased marginally by 0.6%, on a like for like basis (adjusted for the effect of the loss of Orangina sales revenue).
Year to date revenue, excluding Orangina, has grown by 3.5% versus a total soft drinks market which increased by 0.4%, as reported by Nielsen.
As we anticipated, our revenue performance in the third quarter slowed somewhat from the very strong growth in the first half. This was driven by lower promotional activity, wholesaler destocking and a very competitive price driven trading environment in a soft drinks market which was in revenue decline. We continue to control our costs tightly across the business and, as a result, our margins continue to be in line with our expectations.
In the period, we announced our new contractual arrangements for the Snapple brand which we will commence management of in January 2015.
Our balance sheet remains strong and there have been no significant changes in the financial position of the Company since the publication of the Interim Accounts for the six months ended 27 July 2014.
We are pleased to report good progress relating to the previously announced capacity and efficiency investments at our Milton Keynes site, with the carton packaging lines and multipacking capability making good progress. We anticipate closure of the Tredegar site early in our 2015 financial year.
Outlook
The soft drinks market remains dynamic and competitive as we approach the key festive trading period. We have a strong trading plan to drive growth despite the tough year on year comparatives and competitive environment in which we operate. Assuming current market conditions continue, we remain confident of delivering our full year performance expectations and look forward to further growth in the next financial year.
For further information, please contact:
A.G. BARR Tel: 01236 852400
Roger White, Chief Executive
Instinctif Tel: 020 7457 2020
Justine Warren
Matthew Smallwood