Pre Close trading update

RNS Number : 0902K

Barr(A.G.) PLC

25 July 2013

 



A.G. BARR p.l.c.

Pre Close trading update

A.G. BARR p.l.c. ("A.G. Barr"), the soft drinks group, will announce its interim financial results for the six months to 28 July on 23 September 2013.

In the six month period to date, A.G. Barr has continued to grow well ahead of the market.  We anticipate half year sales revenue of c.£127.5m, an increase of 4.9% over the prior year*. Our sales growth momentum has increased over the period, with second quarter growth anticipated at 9.8%, reflecting the strong performance of our core brands following a number of successful marketing initiatives and the positive impact of weather from late June onwards.

Margins in the period have improved relative to last year, benefiting from the strong performance of new product development and innovation, less volatile input costs, modest improvements to pricing and improved efficiency of promotional investment.

We have very recently commenced commercial production of cans at our new Milton Keynes facility ahead of our original time plan. The team at Milton Keynes will now focus on further optimisation and development of this exciting new asset as we move from the initial commissioning phase to increasing levels of output through the second half of our current financial year.

Over the period our balance sheet remains strong and our capital investment plans are in line with management expectations.

Outlook

Our core brands continue to respond positively to further investment and development.  The soft drinks market has benefited from the recent excellent weather conditions experienced across the UK.  We anticipate that in the second half, regardless of the weather, the market will continue to be very competitive as promotional intensity is expected to mirror the significant activity experienced last year.  We have good visibility across our cost base through to the end of the current year as well as strong brand and executional plans which gives us confidence in delivering another strong year.

We are well positioned to grow and develop our business; we will maintain our focus of investing in brands, developing our infrastructure and building an organisation capable of delivering significant long term future growth.

                                                                                                                                  25 July 2013

A.G. Barr	Tel: [phone]
Roger White, Chief Executive
Alex Short, Finance Director
College Hill	Tel:  [phone]
Justine Warren
Matthew Smallwood

*In line with the accounting treatment adopted in the Annual Report and Accounts as at January 2013, prior year reported revenue has been restated to include certain promotional activities previously treated as invoiced costs as a deduction from sales.

 

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