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

A G BarrAnnouncement

01/02/2024 07:00

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RNS Number : 6024B  Barr(A.G.) PLC  01 February 2024

IMMEDIATE RELEASE
 
1 February 2024

A.G. BARR p.l.c.

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

Trading Update

 

A.G. BARR p.l.c., the branded multi-beverage business with a portfolio of
market-leading UK brands, including IRN-BRU, Rubicon, FUNKIN and Boost.

 

Strong revenue and profit performance - positive business momentum

We are pleased to report an anticipated strong revenue and profit performance
in respect of the full year ended 28 January 2024.

                52 weeks ended    52 weeks ended    Growth

28 January 2024
29 January 2023
 Group revenue  c.£400m           £317.6m           c.26%

 

Revenue is expected to be c.£400m, representing c.26% year-on-year growth and
c.7.6% on a like-for-like basis, excluding the contribution from the Boost
Drinks business acquired in December 2022.

Adjusted profit before tax(1) is now expected to be c.£49.5m, up 13.8% on the
prior year (2022/23 : £43.5m) and slightly ahead of previous market
expectations.

Despite the wet summer weather which impacted Q3 market conditions, our
positive underlying brand momentum ensured a strong H2 Group performance :

●    Soft Drinks - including IRN-BRU, Rubicon and Boost

Inflation in the wider soft drinks market continued to drive value growth but
impacted volumes within the sector.  However, our brand building and pricing
strategy delivered both value and volume growth, ensuring we continue to offer
consumers great tasting and affordable brands.

●     FUNKIN Cocktails

Delivered a strong Q4 particularly in the off trade through an excellent
performance in the ready to drink segment.  While the on trade channel
remains variable, with late night venues experiencing reduced footfall,
reports of improved festive trading for a range of hospitality venues is
encouraging as we look forward.

●     MOMA Foods

Further double-digit sales growth, supported by new business wins, most
notably within the speciality coffee channel.

We continue to experience cost inflation albeit at a less significant level
than in the prior year.  Our supply chain capital investment programme is on
track supporting the in-sourcing of the Boost and Rio brands. The associated
operational leverage and synergy benefits are supporting the acceleration of
our margin rebuild programme.

Roger White, Chief Executive, commented :

"All our teams across the Group have worked hard to deliver an excellent
overall performance.  This has been supported by continued brand investment,
strong execution of our sales plans and progress across our supply chain
improvement programme.  We have positive momentum behind our brands and
business as we enter the new financial year.

This strong trading performance, coupled with the benefits already being
delivered by our margin rebuild programme, has ensured we close the year with
a strong profit performance and confidence 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 : Full Year Results - 26 March 2024

 

Note (1) : Reported profit before tax is currently expected to be c.£50.3m
reflecting the release of a £0.8m prior year accrual associated with the
acquisition earn-out of Boost Drinks Limited in December 2022.

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