AG Barr on track but expecting ‘another challenging year’
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Irn Bru maker A.G. Barr is steeling itself for another “challenging year” as it faces pressure from rising inflation and plans for a new tax on sugary drinks, but is on track to meet profit targets with slightly higher than forecast revenues.
Barr, which produces brands such as Rubicon and Tizer as well as its ferrous favourite, said it expects to report revenues of around £257m for the year to January 28, slightly ahead of the average forecast from analysts surveyed by Bloomberg.
Like for like revenues are expected to be 1.5 per cent higher than the previous year.
Barr said the “uncertain economic environment” would make for “another challenging year for UK based businesses”, but added that it is “well placed to continue to deliver long-term value to shareholders.”
The company has been working to reduce the proportion of its products that would be subject to a proposed tax on sugary drinks. It has also cut jobs as part of efforts to offset inflationary pressures with greater efficiency.
In September the company, which is more reliant on high-sugar drinks than peers such as Britvic and Nichols, said the government’s proposals would add “an unnecessary distortion to competition”.
Barr said today that its latest cost control measures have been successfully implemented, and it announced a further £10m investment in its facilities in Milton Keynes “to further improve efficiency and flexibility”.