Barr expects first-half revenue up 8% at £136m

Cumbernauld-based Irn-Bru maker A.G. Barr said in a trading update its revenue for the 26 weeks ended July 29, 2017, is expected to be £136 million, an 8% increase on the same period in the prior year.

Barr, which also produces Rubicon, Strathmore and Funkin, said it is “making good progress” with its sugar reduction programme.

“We are pleased to report a strong first half sales performance supported by the continued success of last year’s new product launches …” said Barr.

“In the first half we increased our investment in support of our innovation and brand growth activity.

“This, combined with slightly later than anticipated phasing of price increases and generally higher operating costs, including the effect of weaker sterling on input costs, had a moderate impact on margins during the period.

“We are making good progress with our sugar reduction programme and are confident that we will meet the portfolio target communicated in March 2017.

“We expect this programme to be completed by the end of the financial year (January 2018) as the reformulated products are phased in across the next six months.”

A.G. Barr CEO Roger White said: “We have delivered a good first half with strong sales growth supported by our successful innovation programme, particularly IRN-BRU XTRA, which has now been launched in England and Wales, and Rubicon Spring, which is gaining distribution across multiple channels.

“We are well positioned to deliver against our expectations across the balance of the year.”