Barr (A.G.) Regulatory News (BAG)

IMMEDIATE RELEASE 31 January 2023

A.G. BARR p.l.c.

("A.G. BARR" or the "Group")

A.G. BARR is a UK-based branded multi beverage business focusedon growthStrong second half sales performance - full year profit expectations on track

A.G. BARR p.l.c. today announces a trading update in respect of the 52 weeks ended 29 January 2023.

We are pleased to report that the positive sales momentum reported in the first half of 2022/23 continued across the balance of the financial year, with full year revenue growth expected to be c.17% on a reported basis and c.15% on a like-for-like basis. The prior financial year included an extra week's trading*, while revenue for the year ended 29 January 2023 was strengthened by an 8-week contribution from the Boost brand, which was acquired by A.G. BARR on 5 December 2022, and a full year of MOMA**.

Our core brands have once again proven their strength and relevance to consumers. The newly acquired Boost and MOMA businesses will provide further room for growth as they develop both their consumer base and customer distribution. All four business units within the Group - Barr Soft Drinks, Boost, Funkin and MOMA - contributed to our overall strong revenue performance. 

As anticipated, the inflationary backdrop across the UK continued across the second half of our financial year. We have remained focused on supporting our employees, customers and consumers alongside taking positive action to mitigate the inflationary cost pressures. 

We are pleased to confirm that we anticipate delivering a full-year profit performance ahead of the prior year, and slightly ahead of current market expectations.

We expect our year end cash position to be robust following the acquisitions completed in December 2022. 

The full year results are expected to be announced on 28 March 2023.

2023/24 outlook

Looking ahead into the 2023/24 financial year we anticipate further revenue growth across the Group with a continuation of our strong brand momentum. This is despite a backdrop of continued high inflation and the planned introduction of a deposit return scheme (DRS) in Scotland in August 2023, both of which have the potential to impact consumer behaviour. Our internal implementation planning for DRS is well advanced and we believe our strong brand portfolio and ongoing actions to mitigate inflation will support the delivery of our growth ambitions.

While we expect there to be an impact on operating margin as a result of inflationary cost pressures, and a short term dilutive impact from the Boost acquisition, we will continue to invest in the long term growth of our brands. At this early stage in the year we remain confident of delivering further profit growth in the year ahead in line with management expectations.

Roger White, Chief Executive, commented:

"Thanks to the contribution from all our teams, we have performed strongly across the year. This positive performance has been supported by continued brand investment and great sales execution. We have accelerated the development of the business, further building our portfolio of differentiated brands with the acquisition of Boost and taking full ownership of MOMA. As we enter a new financial year we are well placed to continue to develop and grow through our clear and consistent value-driven strategy."

For more information, please contact:

A.G. BARR 0330 390 3900 Instinctif Partners  020 7457 2020

Roger White, Chief Executive Justine Warren

Stuart Lorimer, Finance Director Matthew Smallwood

* 2021/22 was a 53-week financial year

** A.G. BARR invested in an initial 61.8% equity stake in MOMA Foods Limited in December 2021 and completed the 100% acquisition on 20 December 2022