AG Barr expects sales growth despite distribution problems

AG Barr has reaffirmed its full-year nett guidance contempt proviso concatenation disruptions that weighed connected a beardown gross show successful the UK soft-drinks group's archetypal half.

In a trading update contiguous (4 August), the Irn-Bru shaper said its gross for the 26 weeks ended 1 August is expected to beryllium astir £246m ($330.8m), up 8% connected the aforesaid play past year.

AG Barr said it was "pleased" with its show but acknowledged its second-quarter gross was affected by reduced banal availability.

The disruption was chiefly linked to interior supply-chain issues tied to a "capability and capableness alteration programme" and worsened by outer issues related to 3rd enactment manufacturing, the radical added.

AG Barr estimated the problems deed its first-half gross by astir £10m. The radical volition study interim results connected 29 September.

The institution said it expects an "improved gross performance" successful its 2nd fractional driven by "market stock gains, encouraging innovation show and proviso concatenation actions".

It is besides forecasting "double-digit percent gross growth" for the afloat year.

Shares successful AG Barr were down arsenic overmuch arsenic 6.51% by midday UK time, trading astatine 603p astatine 11:43 BST.

The institution added its halfway brands, including Irn-Bru, Rubicon and Boost, are "performing strongly".

However, "weakness" from Funkin and Barr Brands partially offset the gains elsewhere.

On the M&A front, AG Barr said it completed the integration of UK firms Fentimans and Frobishers during the archetypal half. Operational efficiencies from the deals, announced earlier this year, are expected to commencement feeding done successful the 2nd half.

The radical besides confirmed its manufacturing concern programme "remains connected way and wrong budget".

AG Barr CEO Euan Sutherland said: "Consumer request for our brands is strong, with each halfway brands gaining marketplace share. The proviso constraints which impacted Q2 show are being resolved and, with strengthening trading momentum driven by our refreshed halfway brands and caller merchandise development, we stay assured for the afloat year."

"AG Barr expects income maturation contempt organisation problems" was primitively created and published by Just Drinks, a GlobalData owned brand.