FDBusiness.com

UK soft drinks producer AG Barr continues to outperform the market with revenue in the 6 months to 28 July 2012 up by 4.9% to £130.0 million and volume ahead by 2.8% compared to the similar period in the prior year. However, after including the impact of a £1 million adverse currency movement of which approximately £0.6 million is expected to unwind in the second half, profit before tax was £14.9 million, down from £16.2 million in the similar period in the prior year. On a constant currency basis, first half profit before tax was down by £0.3 million.

Competition in the soft drinks market has been intense in the 6 month period, influenced by the drive to increase volume through promotion by some industry competitors. Many major brands have increased the volume of sales promoted through ‘buy one get one free’ and less than half price activity. AG Barr has responded by selectively increasing its promotional activity to compete for consumers, remaining very aware of the importance of achieving a sensible balance between good everyday pricing of quality products and maintaining brand equity.

AG Barr’s core brands of Irn-Bru, Barr and Rubicon maintained strong market positions and grew market share 

“We are particularly pleased with our financial performance given the ongoing challenging trading environment. We have continued to outperform, delivering further consistent growth in volume and value ahead of a market which has seen volume declines in the period,” comments Roger White, chief executive of AG Barr. “In addition we have maintained investment in the long term equity of all of our core brands. We are excited by the growth possibilities associated with the development of our new site at Milton Keynes which is now under construction.”

He adds: “Whilst we remain cautious regarding the second half, we have strong plans in place and are pleased to report sales in the first 7 weeks of the second half have shown double digit growth.”