Last checked at 1 Feb 2017 07:00
IMMEDIATE RELEASE 1 FEBRUARY 2017
A.G. BARR p.l.c.
("A.G. BARR")
Trading Update
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A.G. BARR p.l.c., which produces and markets some of the UK's leading brands, including IRN-BRU, Rubicon, Strathmore and Funkin, today announces a trading update in respect of the financial year ended 28 January 2017.
The UK soft drinks market has remained highly competitive, with the latest IRI data for the 48 weeks to 1 January 2017 showing value up c.1% and volume up c.1.5%.
Our second half trading performance strengthened, supported by successful product innovation, specifically through the launch of IRN-BRU XTRA and Rubicon Spring. Revenue for the 52 weeks ended 28 January 2017 is expected to be around £257m. On a like for like basis revenue growth from ongoing business* is anticipated to be c.1.5%.
We have maintained tight control of our costs and, in the final quarter, successfully implemented a company-wide re-organisation that has both enhanced our organisational capability and reduced our overhead base. The operating margin for the financial year remains in line with our expectations.
Our balance sheet is robust, supported by strong free cash flow. We continue to develop the business for the long term and are pleased to announce plans to invest £10m in PET capability at our Milton Keynes facility, building on our already well-invested asset base to further improve efficiency and flexibility.
We believe that the combination of strong trading execution, successful innovation and tight cost control will enable us to meet our profit expectation for the year ended 28 January 2017.
Outlook
Looking ahead the uncertain economic environment indicates that 2017 will be another challenging year for UK based businesses. However our strong and flexible business model, our differentiated brands and our well-invested asset base ensure we are well placed to continue to deliver long-term value to shareholders.
A.G. BARR intends to announce its full year financial results on 28 March 2017.
For further information, please contact:
A.G. BARR Tel: 01236 852400
Roger White, Chief Executive
Stuart Lorimer, Finance Director
Instinctif Tel: 020 7457 2020
Justine Warren
Matthew Smallwood
* Note: Like for like revenue growth from ongoing business adjusts for the effect of the 53rd week of trading and discontinued Orangina business in the prior year