- Trading expectations from September’s results have been key
- It now forecasts a pre-tax profit of £41m for the year until January 2022
- But AG Barr remains in ‘challenging supply chain environment’
soft drink maker At the top Shares are up 6 per cent this morning after the Iron-Bru-maker revealed it expects gains to come ahead of expectations this year after a strong trading period.
The firm said on Monday that business momentum in its soft drink and Funkin’ Cocktail mixer businesses has continued since it reported its interim results in September and that sales have exceeded expectations.
As a result, AG Bar now forecast full-year revenue of around £264 million and a pre-tax profit of £41 million for the 12 months to January 2022, up from £26 million last year.
AG-Barr received an ‘OK’ from US Representative Alexandria Ocasio-Cortez at COP26 in Glasgow last month
The firm told investors that it has seen ‘particularly strong’ performance in its ‘on-the-go’ and hospitality sector, while ‘recent innovation launches have exceeded our expectations’.
This follows the firm’s September interim results, which saw strong performance by warnings about ‘increasing challenges in the UK road haulage fleet associated with the COVID-19 pandemic, affecting customer delivery and inbound content’.
Despite this, its profits rose 43 percent to a record £24 million in the six months to August.
The firm also reinstated its interim dividend at 2p per share in addition to a 10p special payout to investors. Shares fell 3.3 percent, or 18p, to 521p.
Elevating its forecasts, AG Barr cautioned on Monday that it remains in ‘a challenging supply chain environment’ but that its ‘production and broader supply chain have maintained their resilience and the volumes we are experiencing. growth is supported.
It added: ‘The fast-moving situation with respect to the COVID-19 pandemic remains a risk, however we expect our revenue momentum to continue into 2022 and we will provide a further business update in early February 2022. are planning to do.’
Shares of AG Barr have risen 6 per cent to 494.5p, leaving a year-on-year loss of 5.4 per cent. The share price is down 18.3 per cent from its pre-covid level.