NICOLA MALLARD INVESTEC
It is early in the year, but to date the group’s revenue line is trending broadly in line with our forecasts (despite the tough backdrop of competition and weather) and management comment that margins are in line with expectations. Hence, we make no changes to forecast at this stage.
WAYNE BROWN CANACCORD GENUITY
AG Barr has an excellent track record of generating strong returns having averaged a cash flow return on assets of 18.8 per cent over three years. Our confidence that it can maintain (if not exceed) its long term return profile is also supported by the performance of brand owners in the soft drinks market.
DAMIAN MCNEELA PANMURE GORDON
AG Barr has seen a good top-line performance...It is managing to recover raw material price inflation, and margins remain in line with expectations, despite ‘significant increases in competitor promotional activity’. As such we see no reason to change our forecasts for the year.