AG Barr sees strong end to the year

Scottish beverages maker AG Barr saw a strong end to its financial year and said it expects to meet all of its full-year targets.

Like-for-like (LFL) sales in the final quarter were 12% ahead of the prior year, equating to a full-year LFL sales growth of around 6% for the 12 months to January 29th.

The firm, famous for its IRN-BRU, Tizer and Orangina brands of fizzy drink, said that its strong recent performance reflected "well-execute sales plans, a a less demanding comparative trading position and excellent consumer demand behind our core brands".

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AG Barr said that all its core brands grew during the year: IRN-BRU continued to deliver consistent long-term growth throughout the UK; while its 'exotic brands' Rubicon and KA had a combined growth into double digits.

Despite the volatility of input costs such as sugar, packaging materials and energy, the firm said that margins stayed in line with expectations.

However, the firm did warn that it foresees continued pressure on consumers' disposable incomes and further input cost inflation over the next year, as well as an increasingly competitive market place. Nevertheless, it said that it will ensure its margins are protected by the control of costs.

"Amid the challenging economic environment A.G. Barr continues to offer choice and value across a wider portfolio of brands and to an increasing number of consumers," the company said.

BC