AG Barr overcomes supply issues to post strong half – Daily Business
2 min read
Euan Sutherland: on track
Irn-Bru manufacturer AG Barr has overcome supply disruption that impacted the business in the summer and has posted a strong first half.
Revenue in the 26 weeks to 1 August grew 8.5% to £247.4 million, driven by core brand performance and acquisitions. Adjusted profit before tax increased by 2.6% to £36.1m, with an adjusted operating margin maintained at 15%.
The company resolved summer supply issues and is progressing with manufacturing expansions. Integration of Fentimans and Frobishers is complete, with cost synergies expected from the second half. Net bank debt stood at £47m.
The board said the company remains on track to meet full-year market expectations of 10% revenue growth. The interim dividend is 3.82p per share.
Chief executive Euan Sutherland said: “We made strong progress against our strategic priorities during the first half of the year, with continued momentum across our brands and strong execution against our strategic growth drivers.
“Despite supply constraints impacting customer service in the peak summer months, our core brand portfolio performed well in the market, supported by successful rebrands, innovation and marketing.
“Our recent acquisitions have expanded our addressable market and investment in our manufacturing capabilities continues to significantly strengthen the business for the long term.
“Looking ahead, we remain confident in the significant opportunities for the business and our ability to build on this momentum in the second half.
“With our acquisitions now fully integrated and our investment programme progressing well, we remain on track to deliver full year performance in line with market expectations.
“We will continue to focus on delivering above-market growth and creating sustainable long-term value for our shareholders.”
Daily Business Bulletin: Subscribe here for our free morning bulletin of breaking news
#Barr #overcomes #supply #issues #post #strong #Daily #Business