Irn-Bru firm Barr expects revenue to fall up to 15%

Cumbernauld-based Irn-Bru maker A.G. Barr said in a trading update on Tuesday it expects its full year revenue for the year ending January 2021 will be 12-15% below the prior year with a “modest reduction in operating profit margin.”

Barr said its revenue for the 26 weeks ended July 25, 2020, is expected to be about £113 million, an 8% decline on the prior year.

For the three-month period of April to June, amid the coronavirus lockdown, revenue declined 12% against the same period in the prior year.

Barr shares edged about 2% higher, having fallen 33% in the past 12 months.

Barr’s other brands include Rubicon, Strathmore and Funkin.

In its outlook, Barr said: “Our current scenario planning, based on an underlying assumption that the UK will not enter into a further significant period of lockdown, suggests that our full year revenue performance for the year ending January 2021 will be in the region of 12-15% below the prior year, with a modest reduction in operating profit margin reflecting the impact of sales mix and operational de-leverage …

“We expect to confirm a number of full-year non-recurring exceptional cash and non-cash items at the Interim results in September, including the previously communicated compensation associated with the termination of our sale and distribution contract with Rockstar Inc.”

Last month, Barr said it received “notice of termination of its sale and distribution contract with Rockstar Inc.”

PepsiCo Inc announced in March it agreed to buy Rockstar Energy Beverages for about $3.85 billion.

Barr CEO Roger White said: “These have been difficult times for everyone however, despite the challenging environment, we have maintained our quality and service standards, thanks to the dedication and adaptability of our people. 

“We are a profitable and cash generative business in a robust drinks sector and I am confident that our business will continue to prove its resilience for the balance of the year and beyond”.