A.G. Barr, the Cumbernauld-based maker of Irn-Bru, Rubicon energy drinks and Funkin cocktail mixers, said in a trading update it expects revenue for the 26 weeks ended July 31, 2022, to rise about 16% to £157 million.
Barr CEO Roger White said the firm remains confident of delivering a full-year profit performance ahead of the prior year and in line with board expectations.
Barr said the strong revenue performance reflects the continued positive momentum across all its business units – Barr Soft Drinks, Funkin and recently-acquired MOMA Foods.
In December 2021, Barr announced it acquired an initial 60% equity stake in MOMA Foods Limited, the independent branded porridge and plant-based milk business.
“Our growth has been driven by ongoing brand investment and the successful execution of our pricing and promotional activity,” said Barr.
“Trading performance further benefited from the year on year Covid recovery across the market, particularly in the on-trade and out of home sectors, as well as the exceptional British summer weather in recent weeks.”
In its outlook, Barr said: “We anticipate that the UK’s current high level of inflation will continue across the balance of the year, with economic conditions becoming increasingly challenging for consumers and industry alike.
“Across the second half of the financial year we will continue to invest behind our brands and believe that our strategy will support continued growth.
“At the same time we will take appropriate mitigating action to limit the full year impact of cost inflation.”
Barr CEO Roger White said: “Our brands are performing well and our business has continued to demonstrate both its resilience and flexibility.
“While not immune to the current cost inflationary pressures experienced across the UK, looking forward into the second half of the financial year, we remain confident of delivering a full-year profit performance ahead of the prior year and in line with board expectations.”