Another Strong Performance by AG Barr
UK soft drinks manufacturer AG Barr has increased pre-tax profit, excluding exceptional items, by 13.3% to £31.6m for the twelve months to January 29th 2011 and turnover by 10.4% to £222.4m, achieving double-digit like-for-like sales growth for the second consecutive year. The company again outperformed the UK soft drinks market, which grew by 7%.
AG Barr made solid progress in both its key trading segments – carbonates and stills including water – and increased focus on its core brands of Irn-Bru, Barr and Rubicon. Continuing efforts to offset cost pressures allowed the Scottish drinks producer to maintained margins.
The investment programme at AG Barr’s Cumbernauld production facility in Scotland progressed well, as did the move into third party primary logistics and storage. These two major projects have enabled closure of the company’s site at Mansfield in England.
Roger White, chief executive of AG Barr.
Overall capital expenditure during the year totalled £9.8m, which is well ahead of the previous year when £5.3m was spent. It is anticipated that 2011/12 will see further value adding and cost reducing capital projects such as in-house sleeving of PET bottles and the completion of a wind turbine project.
“AG Barr has maintained its track record of strong financial performance, delivering double digit sales and profit growth, despite the challenging macro economic environment. We have increased investment across the business in our brands, assets and people to support this growth,” says Roger White, chief executive of AG Barr. “Across 2010 we also made significant investments in our operations and supply chain, which will give us the ability to improve service to customers and drive efficiency in the future.”
He continues: “The soft drinks sector will face tough comparative trading across 2011, as well as further cost volatility and general economic uncertainty. However, we face these challenging conditions with good momentum, a well invested business, excellent operational plans and a strong financial position.”
