Barr(A.G.) PLC - Trading Update
A.G. BARR p.l.c.
A.G. BARR p.l.c., ("A.G. BARR" or the "Group"), which produces and markets some of the UK's leading drink brands, including IRN-BRU, Rubicon and Funkin, today announces a trading update in respect of the 26 weeks ended
Safety, wellbeing and operational resilience
As the COVID-19 situation has evolved, safety and wellbeing have been our number one priority. Having successfully introduced a range of enhanced safety and hygiene measures across all our operations, we have maintained continuity of production and continued to deliver a high level of customer service and quality.
We ended the 2019/2020 financial year with an encouraging sales performance which continued into the first 8 weeks of the new financial year. However, following the UK-wide commencement of lockdown on
While these shopping and consumption patterns continued throughout the "full lockdown" period across April, May and June, we believe sales benefited from the favourable weather during this time. As lockdown measures have recently started to ease, we are seeing sales in the hospitality and 'on the go' consumption segments beginning to recover, albeit slowly.
Against this backdrop, revenue for the 26 weeks ended
The impact of COVID-19 caused considerable variability in trading patterns across our key customer channels during full lockdown as detailed below :
Group revenue % split for FY 19/20
Estimated net revenue index Apr-
Barr Soft Drinks
The Funkin business has been materially impacted by the challenging hospitality environment, however this has been partially offset by a marked increase in retail and on-line sales, with the nitro infused ready-to-drink cocktails in particular delivering a strong performance.
In light of the uncertainty arising from the COVID-19 pandemic, we took a number of precautionary measures across the period to underpin our existing strong financial position. The business continues to generate positive cash flow and as a consequence our balance sheet remains strong.
In respect of government support, by 31 July we will have brought to a close our use of the Government's Job Retention Scheme and do not intend to access the additional return to work "bonus" initiative.
Given the difficult prevailing circumstances the business has responded well to the challenges we have faced and has delivered a creditable performance in the first 6 months of trading, notwithstanding the relatively weaker comparative trading period in the prior year.
As the country gradually emerges from lockdown there remains a high level of uncertainty around the balance of year trading, in terms of both shopping behaviours and consumer consumption patterns.
Our current scenario planning, based on an underlying assumption that the UK will not enter into a further significant period of lockdown, suggests that our full year revenue performance for the year ending
We expect to confirm a number of full-year non-recurring exceptional cash and non-cash items at the Interim results in September, including the previously communicated compensation associated with the termination of our sale and distribution contract with
Roger White, Chief Executive Officer, commented :
"I am incredibly proud of how our teams across the business have responded to the COVID-19 pandemic. These have been difficult times for everyone however, despite the challenging environment, we have maintained our quality and service standards, thanks to the dedication and adaptability of our people. We are a profitable and cash generative business in a robust drinks sector and I am confident that our business will continue to prove its resilience for the balance of the year and beyond".
For more information, please contact :
A.G. BARR 0330 390 3900 Instinctif Partners 020 7457 2010/2005
Roger White, Chief Executive Justine Warren
Stuart Lorimer, Finance Director Matthew Smallwood
Next update : Interim Results -
This information is provided by RNS, the news service of the
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