Barr(A.G.) PLC Interim Results

A.G. BARR p.l.c.

(“A.G. BARR” or “the Group”)

A.G. BARR produces and markets some of the UK's leading drinks brands, including IRN-BRU, Rubicon and Funkin.

INTERIM RESULTS FOR THE 26 WEEKS ENDED 31 JULY 202

Strong first half performance

Financial summary

Highlights

• Strong sales momentum across both business units : **
• Barr Soft Drinks : Up 12.3%
• Funkin : Up 21.4%
• Trading benefited from year-on-year Covid-19 recovery, particularly in the on-trade and out of home sectors, as well as good summer weather
• Core brand growth highlights our portfolio strength, our ability to flex price and promotions, the value we offer to consumers and customers, alongside the positive impact of brand innovation
• Operating margin, while impacted by cost inflation, has been supported by sales growth, cost control and our pricing approach
• Continued progress across “No Time To Waste” environmental sustainability programme including the approval of our near and long-term science-based emissions reduction targets with the Science Based Target initiative (SBTi).
• Strong balance sheet with £61.3m of cash and cash equivalents
• Interim dividend of 2.5 pence per share representing an increase on the prior year of 25%

Roger White, Chief Executive , commented:

“We made a very strong start to the year and continue to see good momentum across our business and brands.  That said, the UK's high level of inflation has accelerated across the summer and is creating a well documented cost of living crisis for many consumers, alongside increasing challenges for industry. 

We continue to take action to mitigate the cost pressures we face both in the short term across the balance of the current financial year and where possible into 2023. 

We anticipate in the coming months that the current economic environment will impact consumer purchasing behaviour, however we currently remain confident that our strategy and actions will allow us to deliver a full-year profit performance ahead of the prior year.”