AG Barr's profits, revenues beat expectations - UPDATE
Irn-Bru maker AG Barr's full year results were slightly ahead of expectations, with the Scottish group's exotic juice brands, Rubicon and KA showing particularly good growth.
Irn-Bru maker AG Barr's full year results were slightly ahead of expectations, with the Scottish group's exotic juice brands, Rubicon and KA showing particularly good growth.
Underlying profit before tax rose 6.2% to £33.6m in the year to end of January from £31.6m the year before, slightly ahead of the £33.41m the market had been expecting.
Sales continued to outperform the soft drinks market and grew 6.6% to £237.0m (2011: £222.4m). Over the last three years, turnover has increased by a cumulative 27.6%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, not all results improved over the 12-month period as the gross margin fell by 100 basis points with price increases being offset by rising input costs (for ingredients such as sugar, fruit pulp and PET) and a changing product mix.
"AG BARR has demonstrated its resilience in the face of challenging market conditions, in particular coping with substantial raw material cost headwinds while achieving revenue growth based on brand development, innovation and improved focus on execution," said Chief Executive Roger White.
He said that he expects 2012 to be another challenging year for consumers with household disposable incomes staying under pressure.
The company has proposed a final dividend of 20.65p per share (2011: 18.66p) takes the full year dividend up to 27.95p per share, an increase of 10.0% over the prior year.
Cash generation was strong during the year, with free cash flow standing at £20.2m at the year-end, compared with £15.7m the year before. This helped the group reduce its net debt by 59.5% to £6.7m, down from £16.6m previously.
Shares were up 0.74% at 1,229p in afternoon trade on Monday.
JH/BC
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
FTSE 100 dividends: where to find the best yields for UK equities
FTSE 100 dividend forecasts have plateaued but investors can still find good yields in UK equities with payments expected to reach £78.6bn in 2024
By Katie Williams Published
-
Will the R&D tax credit change in the Autumn Budget?
Will Labour revise state help designed to foster R&D in the upcoming Autumn Budget?
By David Smith Published