Irn Bru maker AG Barr to beat profit forecasts amid strong sales momentum
It said it has been boosted by positive trade in the ‘on-the-go’ and hospitality markets.
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Your support makes all the difference.Irn-Bru manufacturer AG Barr has revealed that its profits for the year are expected to beat market forecasts after strong sales continued in recent months.
The Scottish business, which also makes Rubicon, said sales since September “have grown ahead of our expectations”.
It said it has been boosted by positive trade in the “on-the-go” and hospitality markets, while recent product launched have also performed better than expected.
The drinks firm has been buoyed by the return of more normal habits as people head back to offices in city centres, as well as the recovery of bars and restaurants in recent months.
AG Barr told investors that its production and supply chain has remained resilient and supported recent growth despite the “challenging supply chain environment”.
“As a result of our continued strong volume performance and despite ongoing near-term operating cost pressures, we now anticipate both revenue and profit before tax for the full year to be ahead of current market expectations,” the company said.
It reported that revenues are expected to be around £264 million for the year, with a forecast pre-tax profit of around £41 million, assuming no significant changes to market conditions.
It is the second time the company has upgraded its profit guidance in the last four months.
The London-listed business added that the pandemic “remains a risk” but highlighted that it expects the strong sales momentum to continue in 2022.
Wayne Brown, equity analyst at Liberum, said: “Another upgrade two months before year-end suggests a high degree of confidence and more to come is now highly likely.”