AG Barr toasts full year profit rise

Drinks firms AG Barr delivered a four per cent increase in full year profit, following good demand from its core products, and said despite tough market conditions it is confident in future trading.

Drinks firms AG Barr delivered a four per cent increase in full year profit, following good demand from its core products, and said despite tough market conditions it is confident in future trading.

The North Lanarkshire based group said profit on ordinary activities before tax and exceptional items increased by 4.3% to £35.0m for the year ended January 26th 2013 while turnover increased by 6.6% to £237.6m.

Underlying earnings per share increased by 10.9% as its core brands IRN-BRU, Barr, Rubicon and KA all grew. Rockstar performed particularly strongly, it said.

AG Barr said margins were slightly reduced due to the higher cost of goods, which were partially mitigated by our cost control and pricing actions.

Chief Executive Roger White commented: "Across the year, market conditions have remained difficult, specifically impacted by poor summer weather and further cost of goods inflation."

He added: "Despite the added distraction of the merger discussions with Britvic, the business has remained focused and delivered all of the 'business as usual' operating plans across the year."

The board recommended a second interim dividend of 7.4p per share, which was paid to shareholders on 18 January 2013, in lieu of the final dividend. This gives a total dividend for the year of 10.02p per share, a full year increase of 7.6%.

"We remain confident in our future prospects both as a standalone business and combined with Britvic."

CJ

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