A.G. BARR Reports 5% Growth in Sales in Q4, Expects Merger Completion in Late February
A.G. BARR p.l.c., the soft drinks group, has announced that trading in the final quarter of the financial year is expected to have performed ahead of the total soft drinks market.
25 Jan 2013 --- It is anticipated that total sales in the final quarter will be over 5% ahead of the prior year. The performance in the final quarter is particularly pleasing given the double digit year on year growth in the same period last year. This will give a full year revenue expectation of circa £253 million reflecting a year on year growth of circa 7%.
Despite very poor summer weather and a competitive market place, all of our core brands grew in the year. IRN-BRU performed well in challenging conditions with a very positive consumer response to the ‘IRN-BRU gets you through’ marketing campaign. Rubicon and KA have continued to build on strong prior year performances and the Barr brand has maintained its double digit growth performance. Rockstar has seen a step change in its performance, benefiting from a buoyant energy category and strong trading execution across the year.
The operational performance of the business has improved across the financial year with excellent customer service across the final quarter.
Our investment in the Crossley site at Milton Keynes is progressing well – on time and to budget. It is expected that commercial production will commence in the summer of 2013.
Over the period our free cashflow generation and balance sheet have remained strong, with net debt in line with expectations allowing for the impact of the expenditure on the Milton Keynes project and the acceleration of the dividend paid in January 2013.
A.G. Barr remains on course to meet its expectations for the financial year ending 26 January 2013.
There is no further update following the rescheduled expected OFT decision date of 13 February 2013. As previously announced, the parties continue to work towards the implementation of the merger, with the effective date currently expected to be 26 February 2013.
A.G. Barr has delivered a robust performance in a market place impacted by the combination of very poor summer weather and the ongoing economic challenges faced by consumer goods companies, notably raw material cost pressures and inconsistent consumer demand. Looking forward, it is unlikely that these challenges will materially change, however we remain cautiously optimistic that the combination of our proven operating model, continued focus on efficiency, strong brand equity, sound balance sheet and growth potential leave us well placed to continue to build on this performance.
A.G. Barr intends to announce its full year financial results on 21 March 2013.
