Q4 Trading Update

RNS Number : 3066D

Barr(A.G.) PLC

28 January 2015

 

IMMEDIATE RELEASE

28 January 2015

A.G. BARR p.l.c.

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

Fourth quarter trading update

A.G. BARR p.l.c., the soft drinks group, today announces that trading performance in the final quarter of the financial year ended 25 January 2015 is expected to have been well ahead of the total soft drinks market, with A.G. BARR achieving growth of over 5% in the period.

The strong performance in the final quarter saw a renewed sales momentum following a slower third quarter. Full year revenue is expected to be around £259 million, a year on year growth of c.2%.  Stripping out the impact of lost Orangina revenue, year on year sales growth would be c.3% on a like for like basis.

All core brands have performed well across the year in what has been a period of low market growth in soft drinks. Despite the underlying performance the market has at times been volatile, with periods of intense competitive trading activity, as brand owners and retailers across varied channels fought for market share.

The highlights of the Commonwealth Games sponsorship and some strong brand innovation have helped to support the performance of A.G. BARR's core brands over the full year.  To underpin margins, action has been taken to proactively manage costs across the business, thus ensuring that the trading decision in the second half, not to participate in some of the more aggressive price promotion, has not impacted overall profit performance.

Excellent progress has been made in the execution of the operational improvement plans and the commissioning of the new carton and multi packing facilities at Milton Keynes is well underway. This will enable the Tredegar site to close as planned in early February.

Over the period, free cashflow generation and the balance sheet have remained strong, with the Group now expected to be in a positive cash position at the year end reflecting some phasing changes in our capital expenditure plans.

Outlook

A.G. BARR has delivered a robust performance and remains well on course to meet its expectations for the financial year ended 25 January 2015.

We are cautiously optimistic regarding the new financial year and at this point expect to see further growth and development across the Company, despite the challenging operating environment and market conditions.

A.G. BARR intends to announce its full year financial results on 24 March 2015.

A.G. BARR	Tel:  [phone] Roger White, Chief Executive Stuart Lorimer, Finance Director
Instinctif Partners	Tel: [phone] Justine Warren Matthew Smallwood

 

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