REG - Barr(A.G.) PLC - Trading Update

A G BarrAnnouncement

31/01/2023 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230131:nRSe3186Oa&default-theme=true

RNS Number : 3186O  Barr(A.G.) PLC  31 January 2023

IMMEDIATE RELEASE
 
31 January 2023

A.G. BARR p.l.c.

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

 

A.G. BARR is a UK-based branded multi beverage business focused

on growth

Strong second half sales performance - full year profit expectations on track

A.G. BARR p.l.c. today announces a trading update in respect of the 52 weeks
ended 29 January 2023.

 

                52 weeks ended    53 weeks* ended   Growth

29 January 2023
30 January 2022
 Group revenue  c.£315m           £268.6m           c.17%

 

We are pleased to report that the positive sales momentum reported in the
first half of 2022/23 continued across the balance of the financial year, with
full year revenue growth expected to be c.17% on a reported basis and c.15% on
a like-for-like basis.  The prior financial year included an extra week's
trading*, while revenue for the year ended 29 January 2023 was strengthened by
an 8-week contribution from the Boost brand, which was acquired by A.G. BARR
on 5 December 2022, and a full year of MOMA**.

Our core brands have once again proven their strength and relevance to
consumers.  The newly acquired Boost and MOMA businesses will provide further
room for growth as they develop both their consumer base and customer
distribution.  All four business units within the Group - Barr Soft Drinks,
Boost, Funkin and MOMA - contributed to our overall strong revenue
performance.

As anticipated, the inflationary backdrop across the UK continued across the
second half of our financial year.  We have remained focused on supporting
our employees, customers and consumers alongside taking positive action to
mitigate the inflationary cost pressures.

We are pleased to confirm that we anticipate delivering a full-year profit
performance ahead of the prior year, and slightly ahead of current market
expectations.

We expect our year end cash position to be robust following the acquisitions
completed in December 2022.

The full year results are expected to be announced on 28 March 2023.

2023/24 outlook

Looking ahead into the 2023/24 financial year we anticipate further revenue
growth across the Group with a continuation of our strong brand momentum.
This is despite a backdrop of continued high inflation and the planned
introduction of a deposit return scheme (DRS) in Scotland in August 2023, both
of which have the potential to impact consumer behaviour.  Our internal
implementation planning for DRS is well advanced and we believe our strong
brand portfolio and ongoing actions to mitigate inflation will support the
delivery of our growth ambitions.

While we expect there to be an impact on operating margin as a result of
inflationary cost pressures, and a short term dilutive impact from the Boost
acquisition, we will continue to invest in the long term growth of our
brands.  At this early stage in the year we remain confident of delivering
further profit growth in the year ahead in line with management expectations.

Roger White, Chief Executive, commented:

"Thanks to the contribution from all our teams, we have performed strongly
across the year. This positive performance has been supported by continued
brand investment and great sales execution.  We have accelerated the
development of the business, further building our portfolio of differentiated
brands with the acquisition of Boost and taking full ownership of MOMA.  As
we enter a new financial year we are well placed to continue to develop and
grow through our clear and consistent value-driven strategy."

For more information, please contact:

A.G. BARR  0330 390
3900
Instinctif Partners  020 7457 2020

Roger White, Chief
Executive
Justine Warren

Stuart Lorimer, Finance
Director
Matthew Smallwood

* 2021/22 was a 53-week financial year

** A.G. BARR invested in an initial 61.8% equity stake in MOMA Foods Limited
in December 2021 and completed the 100% acquisition on 20 December 2022

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTWPUGAGUPWGMU