AG Barr confident despite pressures

Scottish soft drinks maker AG Barr said current trading remains in line with company expectations and it is on track for the full year despite constrained consumer spending and fierce competition.

The maker of Irn Bru and Tizer said revenue for the 18 weeks from 31 July increased by 5.6% compared to the same period last year, after a strong performance from its key brands.

AG Barr said year to date revenue has increased by 4.6% compared to annual growth of 11.5% the year before.

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Operating margins remain in line with company expectations.

"Across the market consumer spending continues to be constrained and competitor promotional activity remains high. We are now entering the important seasonal Christmas trading period when we anticipate marketplace pricing and promotion will remain very competitive," the company said in a statement.

AG Barr added, "In the period we made good progress against our operational improvement objectives following the temporary capacity challenges experienced earlier in the year, however we have continued to outsource a limited volume of production to ensure customer service levels were met during the key summer months."

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cj