REG - Barr(A.G.) PLC - Trading Statement

A G BarrAnnouncement

30/07/2024 07:00

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RNS Number : 2803Y  Barr(A.G.) PLC  30 July 2024

 IMMEDIATE RELEASE
 
30 July 2024

A.G. BARR p.l.c.

("A.G. BARR" or "the business")

 

Strong Revenue Growth And Margin Rebuild On Track

A.G. BARR p.l.c., the branded multi-beverage business with a portfolio of
market-leading UK brands, today announces a trading update for the 26 weeks
ended 27 July 2024.

Headlines

-     A.G. BARR: H1 revenue growth of c.5% of which Soft Drinks growth was
c.7%

-     IRN-BRU: growth in volume and value supported by a highly successful
Euros media campaign

-     Rubicon: double digit growth with innovation, marketing investment
and new distribution gains

-     Boost: margin realignment and business integration on plan,
production sourcing programme underway

Euan Sutherland, Chief Executive, commented:

"I am pleased to report overall H1 revenue growth of c.5% with Soft Drinks
growth of c.7%, against strong prior year comparatives. The strategic margin
rebuild programmes are on plan, guidance on revenue and margin remains
unchanged, and we are on track to meet FY expectations*.

Our four power brands - IRN-BRU, Rubicon, Boost and FUNKIN - have clear paths
to long term growth, supported by strong innovation programmes across all of
our portfolio and opportunities to work even more closely to add value to our
customers, in all channels.

We continue to invest in our supply chain which will deliver tangible benefits
as we insource more of our volume, build capacity to support our growth plans,
improve resilience and enhance our margins.

We have a clear and focussed UK based growth strategy with simple KPIs of Net
Revenue, Operating Margin and ROCE."

Performance Highlights

Revenue for the first half of the financial year is expected to be c.£221m
(2023/24 : £210.4m).

Soft Drinks

Strong Soft Drinks brand performance was led by Rubicon where successful
marketing and further distribution gains drove double digit revenue growth.
Revenue from IRN-BRU was up through a combination of volume and value growth
and continued market share gains in England. As previously communicated, the
focus for Boost this year is on margin build and insourcing of the operation
and this continues on plan.

Cocktail Solutions

The FUNKIN ready-to-drink (RTD) business has continued to grow at pace in our
strategic growth channel of retail where it is the number 1 RTD cocktail
brand. Strong off-trade growth was impacted by short term issues with third
party can production and the ongoing challenges in the hospitality sector
where late night venues remain particularly affected.

Other and Business Change Programme

MOMA maintained its growth in H1 with new distribution gains.

The Barr Direct route to market closed at the end of June with no impact to
customer service. Symbol and Independent retailers are now fully serviced
through the Wholesale Channel, supported by a larger Field Sales team.

The integration of Boost into Barr Soft Drinks is on track and will be
completed in H2. Manufacturing synergies continue to be realised as production
is insourced.

As previously stated, these two projects are expected to give rise to a
one-off cost of c.£5m in the 2024/25 financial year, the majority of which
will be incurred in H1.

As previously communicated, Jonathan Kemp, Commercial Director, will retire
later in the year and we are pleased to announce the appointment of Dino
Labbate**. Dino joins in January, in a newly created, broader role of MD A.G.
BARR, reporting to Euan Sutherland. Jonathan will not be replaced on the board
and will remain with the business on a consultancy basis through to autumn
2025.

H2 Outlook

The half year trading performance is in line with our expectations. We remain
committed to improving our profit margins which, combined with the forecast
revenue growth, will lead to positive earnings momentum for H2 and beyond. The
outlook for the full year remains unchanged and we are on track to meet FY
expectations*.

For more information, please contact :

A.G.
BARR
                                 Instinctif
Partners

0330 390 3900
                                           020 7457
2010/05

Euan Sutherland, Chief Executive
                                  Justine
Warren

Stuart Lorimer, Finance
Director
                                  Matthew
Smallwood

 

 

* Analyst consensus : FY24 Net Revenue £421.2m, PBT £56.9m (FY23 PBT
£50.5m)

** Dino Labbate is currently GB Commercial Director for Hospitality, Britvic
PLC

 

Next update : Interim Results - 24 September 2024

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