A.G. BARR Plc (LON:BAG) , which produces and markets some of the UK’s leading drink brands, including IRN-BRU, Rubicon, Strathmore and Funkin, today announced its interim results for the six months ended 28 July 2018.
Financial headlines
● Revenue grew by 5.5% to £136.9m (2017 : £129.8m) 1
● Profit before tax and exceptional items increased 4.0% to £18.2m (2017 : £17.5m) 2
● Statutory profit before tax of £18.2m, compared to £19.4m in the prior year (which included £2.5m of exceptional gain from a property disposal)
● Operating margin of 13.4% (2017 : 13.9% before exceptional items) 1, 2
● Earnings per share before exceptional items increased by 8.6% to 12.74p (2017 : 11.73p) 2
● Free cash flow of £9.4m (2017 : £20.0m) 2 has resulted in a net funds position of £4.2m at the period end (2017 : net funds of £7.9m)
● An interim dividend of 3.90 pence per share (2017 : 3.71 pence) has been declared, an increase of 5% on the prior year
● Balance sheet remains strong
● Share repurchase programme on track
Strategic highlights
● Solid financial performance having carefully navigated through a challenging and volatile marketplace
● Continued investment in core brands and innovation delivering strong revenue performance and market share gains
● Newly established partnerships with San Benedetto and Bundaberg progressing well
● Funkin brand gaining traction in new formats and new market segments
● Further progress across sustainability agenda with commitment to introduce up to 50% recycled material content into our PET bottles
Commenting on the results, A.G. Barr Plc , Roger White, Chief Executive, said :
“We have delivered a solid financial performance in the first half of the financial year, navigating through the Soft Drinks Industry Levy implementation, reformulation, extremes of weather and CO2 shortages in addition to a dynamic consumer, customer and macro-economic environment. Our core brands have performed well and have good momentum with both consumers and trade customers.
We will continue to ensure our actions and investment decisions support our long term growth strategy. We plan to invest further across the second half of the financial year which we anticipate will have a moderate impact on margins. A.G. Barr remain on target to meet our profit expectations for the full year.”
