FDBusiness.com

AG Barr, which produces and markets some of the UK’s leading drinks brands, including IRN-BRU, Rubicon, Strathmore and Funkin, has reported an 8.4% decline in revenue to £255.7 million and profit before tax and exceptional items down by 17.3% to £37.4 million for 52 weeks ended 25 January 2020. Statutory profit before tax was also £37.4 million – a drop of 16%.

The decline in sales was a result of specific brand challenges within soft drinks (primarily Rubicon and Rockstar), the negative short-term impact of pricing re-alignment (principally relating to IRN-BRU), and the backdrop of strong prior year comparatives with 2018 benefitting from the exceptional summer weather and a well-managed response by the group to the industry wide C02 shortage.

In the year ended 25 January 2020 the group experienced a variety of challenges which adversely impacted sales and profitability. However, significant action has been taken to address these issues, and AG Barr finished the year strongly and with the foundations and strategy in place for long-term success.

“Overall the year to January 2020 was disappointing with our core soft drinks business underperforming both the market and our own expectations,” says Roger White, chief executive of AG Barr. He continues: “We exited the financial year with improved trading performance and momentum, which continued into the new year however the COVID-19 situation is now materially impacting our business. There is no immediate certainty around the severity and duration of the impact on our business and as such the board is unable to provide guidance for the current financial year at this time. However, the actions we are taking to conserve cash and reduce costs, combined with our strong financial base, give us confidence in the resilience of our business for the long term.”

“We will continue to monitor developments closely, responding appropriately as required, while also ensuring that we play our part in supporting our communities through these unprecedented times.”