Irn-Bru maker A.G.Barr Plc has said that almost all of its soft drinks are now exempt from a sugar tax levied by Britain which sent beverage makers scuttling to change formulations and raise prices of drinks.
Britain's sugar tax on soft drinks came into effect last April as part of efforts to battle childhood obesity, with charges levied on drinks containing more than 5 grammes of sugar per 100 millilitres.
Barr, which reported a 2.5% rise in adjusted pretax profit for the full year on Tuesday, said it has successfully reformulated 99% of its soft drinks to avoid being taxed.
It did not specify which drinks are still covered by the tax.
Revenue Growth
Revenue grew by 5.6% in the 52 weeks to 26 January, the group said, to £279.0 million.
"At the outset of 2018 we set out a clear strategy and specific actions which we believed were required to deliver continued financial success during what we forecast to be a year of significant changes across our industry," commented Roger White, A.G.Barr chief executive.
"I am pleased to report we have delivered another strong financial performance having adapted well to both the circumstances we anticipated and those which were less expected."
White added that the group has grown its revenue by 8.0% and 5.6% respectively over the past two years, which reflects the growth potential inherent in the business, despite market uncertainty.
"Whilst the uncertainty across the UK economy is likely to prevail for the foreseeable future, we have consistently demonstrated over the long-term that our strategy and execution are fit for purpose and resilient," he added. "The markets in which we operate are robust and provide us with continued opportunities to grow."
News by Reuters, edited by ESM. Additional reporting by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
