Irn-Bru maker AG Barr has reported a surge in sales amid “exceptional British summer weather” but warned of an “increasingly challenging” backdrop as prices continue to rocket.
The firm has flagged revenues of about £157 million for the first half of its new financial year in a recent update, marking a year-on-year rise of 19 per cent. Bosses said the strong revenue performance reflects the “continued positive momentum” across all business units – Barr Soft Drinks, Funkin and Moma Foods.
“Our growth has been driven by ongoing brand investment and the successful execution of our pricing and promotional activity,” as told to investors, The Scotsman reported.
Trading performance further benefited from the year on year Covid recovery across the market, particularly in the on-trade and out of home sectors, as well as the “exceptional British summer weather in recent weeks”.
The firm, however, further added that the UK’s current high level of inflation will continue across the balance of the year, with economic conditions becoming increasingly challenging for consumers and industry alike.
“Across the second half of the financial year we will continue to invest behind our brands and believe that our strategy will support continued growth. At the same time we will take appropriate mitigating action to limit the full year impact of cost inflation.”
Reacting to the results, chief executive Roger White said that the brands are performing well and the business has continued to demonstrate both its resilience and flexibility.
“While not immune to the current cost inflationary pressures experienced across the UK, looking forward into the second half of the financial year, we remain confident of delivering a full-year profit performance ahead of the prior year and in line with board expectations,” he said.
While consumers face a squeeze on spending amid the cost-of-living crisis, Barr is hopeful that its most famous product will remain an “affordable treat” for many.