Pre-close trading update
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IMMEDIATE RELEASE |
23 January 2014 |
A.G. BARR p.l.c.
("A.G. BARR")
Pre-close trading update
A.G. BARR p.l.c., the soft drinks group, today announces a trading update prior to entering a close period on 27 January 2014. Trading has maintained its strong momentum across the final quarter of the financial year and performance is expected to be ahead of the total soft drinks market.
It is anticipated that total sales revenue in the final quarter will be ahead of the prior year by circa 5.5%. This performance is particularly pleasing given the tough prior year comparatives which saw near double digit growth in the second half of last year. We anticipate full year revenue of circa £252 million reflecting a year on year growth of circa 6.1%.
Our core brands continue to respond positively to our ongoing investment and development actions despite the increased intensity of price-driven competition in all of the major trade channels. Underlying margins have improved versus the prior year however planned increases in levels of investment in marketing and promotion have capped further margin progress in the final quarter.
The operational performance of the business has been strong throughout the financial year, with excellent customer service delivered during periods of peak demand in the summer and across the Christmas trading period. This has been supported by the addition of the new site at Milton Keynes where commissioning of the plant and the logistics transfer programme are now complete, in line with the expected project timescales.
Over the period our free cashflow generation and balance sheet have remained strong, with the expected year-end net debt position better than previously anticipated.
A.G. BARR remains on course to meet its expectations for the financial year ending 26 January 2014.
Outlook
A.G. BARR has delivered a consistent and robust performance in a marketplace characterised by volatile consumer demand and weather patterns, in addition to the ongoing economic challenges faced by consumers and a tough competitive environment. Looking forward, although it is unlikely that these challenges will materially change, we remain optimistic that the combination of our well-invested operating platform, strong balance sheet, proven business model and capacity for growth leave us well positioned to continue to deliver long term shareholder value.
A.G. BARR intends to announce its full year financial results on 25 March 2014.
For more information, please contact:
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A.G. BARR |
Tel: 01236 852400 |
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Roger White, Chief Executive |
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Alex Short, Finance Director |
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College Hill |
Tel: 020 7457 2020 |
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Justine Warren |
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Matthew Smallwood |
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This information is provided by RNS
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