REG - Barr(A.G.) PLC - Trading update for the 26 weeks ended 30 July 2023

A G BarrAnnouncement

01/08/2023 07:00

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RNS Number : 8079H  Barr(A.G.) PLC  01 August 2023

IMMEDIATE RELEASE
                                                1
August 2023

A.G. BARR p.l.c.

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

 

Strong first half performance

A.G. BARR p.l.c., a branded multi-beverage business with a portfolio of
market-leading UK brands, including IRN-BRU, Rubicon, FUNKIN and Boost, today
announces a trading update for the 26 weeks ended 30 July 2023.

Revenue for the first half of the financial year is expected to be c.£210m
(2022/3 : £157.9m).  This represents c.33% year-on-year revenue growth -
c.10% on a like-for-like basis - excluding the contribution from the Boost
Drinks business acquired in December 2022.

The Group delivered revenue and volume growth, reflecting underlying brand
momentum, the benefit of higher pricing from early in the year and
particularly good weather in June :

● Barr Soft Drinks and Boost Drinks - strong trading performance across the
soft drinksdivisions driven by volume growth, pricing and mix, alongside
effective sales execution and successful consumer marketing activity

● FUNKIN Cocktails - revenue growth driven by further distribution gains,
increased consumer marketing investment and continued exciting innovation,
particularly in the retail channel.  While cocktail consumption in the
on-trade has slowed following last year's post-Covid high, FUNKIN has
maintained its position as the UK's Number 1 cocktail brand

●  MOMA Foods - brand and consumer marketing investment supporting
significant year on year growth, as oat milk outperforms other plant-based
milk categories

As anticipated, first half margins remained under pressure but are in line
with our expectations.  We remain focused on offering consumers great value,
affordable brands.

H2 outlook

We exit the first half with strong brand momentum. The Scottish deposit return
scheme delay provides us with a more stable and certain consumer environment
and enables the accelerated execution of our innovation plans.  We now have a
number of exciting brand launches planned for the second half of the year.

We continue to progress our strategic brand investment programme at pace
across the Group.  As previously stated, the current full year Group
operating margin will be impacted by persistent cost inflation alongside the
known near-term impact of the lower margin Boost division.

We currently expect our full year profit performance to be marginally above
the top end of analyst expectations.

Roger White, Chief Executive, commented:

"In March we communicated that 2023/24 would be a year of investment across
the business, supporting the Group's long-term revenue and profit growth
ambitions.  I am pleased to report we have had a strong first half, despite
ongoing macro cost challenges.  Our focus remains on offering consumers great
value, affordable brands.

Our medium-term plan to rebuild the Group's operating profit margin is
progressing well across a range of activities, including supply chain
optimisation, cost management and portfolio development.  We have strong
brand plans in place across the business for the balance of the year to
sustain our growth momentum and we remain confident in the Group's long-term
growth strategy".

For more information, please contact :

A.G.
BARR
Instinctif Partners

0330 390
3900
                                 020 7457
2010/05

Roger White, Chief
Executive
Justine Warren

Stuart Lorimer, Finance
Director
Matthew Smallwood

Next update : Interim Results - 26 September 2023

 

 

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