Date: Monday 21 May 2012
Soft drinks firm AG Barr said, despite current market headwinds, low consumer confidence and unseasonably wet weather, the business is performing in line with company expectations.
The Irn-Bru maker said total revenue for the 14 weeks to 5 May 2012 climbed 4.3% compared to the same period last year despite the wettest April in more than a century.
"This is a robust performance given the combined effects of a particularly wet April, which has impacted high street footfall and the challenging soft drinks market in general," the group said in a statement.
AG Barr, whose brands also include Rubicon fruit juices and Strathmore water, added that it has started the new financial year with all of its core brands performing well in difficult market conditions. The group also recently announced a move into the ice-cream market with a range of tropical flavour tubs and ice lollies under its Rubicon brand.
"During the course of the period the unseasonal weather for the time of year has impacted the market and a period of more normal conditions will now be required to bring the market back into growth," the group explained.
AG Barr said it is making good progress with its plans related to the previously announced £20m facility at Milton Keynes.
Meanwhile the outlook for material costs has not altered in recent months and it continues to expect mid single digit material cost inflation for the full year.
The group said actions to mitigate the impact on margins are well underway. Pricing changes are completed and further efficiency plans are in place to support its longer term cost control actions.
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