A.G. Barr Sees Annual Profit At Top End Of Forecast On Higher Prices
A.G. Barr, best known for Scottish fizzy drink Irn-Bru, expects annual adjusted pretax profit to be at the top end of current market view, helped by higher prices of its soft drinks.
In July, the company forecast lower annual profit as price increases for its drinks hit volumes.
The company had cut prices in 2018 and changed the recipe for some of its drinks in response to a sugar tax, boosting sales in that year.
The British soft drink maker expects adjusted pretax profit just above £37 million (€43.7 million) for the year ended Jan. 25., compared with £45.2 million (€53.4 million) last year.
'Reset Our Business'
"We are taking action to reset our business and we enter the new financial year with confidence and a strong trading plan," chief executive Roger White said.
The Rockstar and Rubicon maker expects full-year revenue to be around £255 million, compared with £279 million last year.
A.G. Barr also said it completed the first phase of its business re-engineering programme and expects associated exceptional costs of £1.5 million to £2 million in the year to be almost entirely offset from the removal of a wind turbine in Cumbernauld.
Shares of the company jumped nearly 10% to 596 pence by 0810 GMT, topping gainers on the FTSE midcap index.