A.G. Barr has forecast a 19% rise in first-half like-for-like revenue, powered by steady demand for its cocktail mixes and fizzy drinks during summer and a recovery in demand for its out-of-home products.
The company benefited from greater at-home consumption of food and drinks during the pandemic, which has stayed strong as it launched new products, even as pubs and restaurants reopened.
A.G. Barr, best known for its Scottish fizzy drink Irn-Bru, said it expects revenue for the 26 weeks ended July 31 to be £157 million (€187.3 million).
On a reported basis, revenue is expected to be up 16%.
'Resilience And Flexibility'
"Our brands are performing well and our business has continued to demonstrate both its resilience and flexibility," commented Roger White, chief executive.
"While not immune to the current cost inflationary pressures experienced across the UK, looking forward into the second half of the financial year, we remain confident of delivering a full-year profit performance ahead of the prior year and in line with board expectations."
Inflation Concerns
The company warned that the UK's current level of inflation will continue, but it would take action to limit the full-year impact of rising costs.
'We anticipate that the UK's current high level of inflation will continue across the balance of the year, with economic conditions becoming increasingly challenging for consumers and industry alike,' it said in a statement.
'Across the second half of the financial year we will continue to invest behind our brands and believe that our strategy will support continued growth.'
News by Reuters, edited by ESM. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
