AG Barr boosts revenue despite dismal weather

Soft drinks maker AG Barr improved revenue, following a good performance from its core products despite the soggy weather, and said it is very confident in future trading.

The Irn-Bru maker said total revenue for the 15 weeks to May 12th 2013 increased 2.4% from the same period last year.

The group said this compares favourably with the overall soft drinks market, as measured by Nielsen, which was flat in revenue terms during the same period. The drinks market has been hurt by the unseasonable weather and a strong prior year performance.

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AG Barr said: "Whilst it is still early in our financial year, our core brands continue to perform well despite the weather, economic challenges and significant increases in competitor promotional activity."

During the period, the group said margins performed in line with company expectations as it continues to invest in marketing across all of its core brands.

Commenting on the potential merger with Britvic, it added: "We continue to cooperate fully with the Competition Commission and in line with the published timetable we expect to receive notification of their provisional findings in early June."

Looking ahead the Cumbernauld-based firm said as it enters the key summer trading period, it expects the marketplace will remain highly competitive.

"Our commercial and operational plans are well developed and we remain focused on delivering a strong result for the year. We remain very confident in our future prospects," it said.

AG Barr said its balance sheet remains strong and there have been no significant changes in its financial position since its update in January.

CJ