Irn-Bru maker A.G. Barr expects its half-year revenue to be higher than prior-year levels, supported by strong demand for its cocktail mixes and soft drinks.
In the past year to current, the company has downsized and acquired businesses to expand its soft drinks portfolio to keep up with growing demand and competition.
The recently agreed £3.3-billion (€3.92 billion) merger between Danish brewer Carlsberg and British soft drinks maker Britvic had caused shares of peers A.G. Barr and Fever-Tree to rally.
The merger was a move that could forge a UK beverage 'powerhouse', Carlsberg said.
Outlook
A.G. Barr now expects its revenue for the 26-week period ended 27 July to be about £221 million (€262.4 million), compared with £210.4 million (€249.8 million) posted a year earlier.
The beverage maker reiterated its annual forecast after the second half of the year was trading in line with its expectations.
Analysts, on average, in a company-provided poll had forecast profit for the current financial year to be about £56.87 million (€67.5 million), while revenue is expected to be about £421.19 million (€500.04 million).
"The strategic margin rebuild programmes are on plan, guidance on revenue and margin remains unchanged, and we are on track to meet FY (full-year) expectations," recently appointed CEO Euan Sutherland said in a statement.
The company will report its interim results on 24 September 2024.
Business Reorganisation
In March of this year, A.G. Barr announced plans to cut 195 jobs as part of a proposed business reorganisation and integrate the popular Boost energy drink brand with its broader soft drinks unit.
The company also said the reorganisation would result in the closure of its Moston, Wednesbury and Dagenham operations in England that offered direct-to-store service to independent retailers under the 'Barr Direct' model.
