Irn-Bru maker AG Barr revealed a modest bump in annual profits and revenues this morning, shrugging off challenges from a new sugar tax and CO2 shortages but forecasting continued uncertainty in the months ahead.
In its full-year results this morning, the FTSE 250 soft drinks manufacturer said that revenue grew by 5.6 per cent to £279m during the 12 months to 26 January, rising from £264m in the previous year.
Meanwhile, profits before tax and exceptional items climbed 2.5 per cent over the same period to £45.2m.
The group issued a proposed final dividend of 12.74p per share, rising from 11.84p per share in 2018.
Why it's interesting
The news comes several months after the fizzy drinks maker flagged concerns over future regulations as well as the current business uncertainty in the run up to Britain’s imminent departure of the EU, despite predicting a rise in full-year revenue.
“Looking ahead, the current political and economic uncertainty in the UK looks set to continue. For the soft drinks industry, further regulatory intervention is on the horizon and consumer dynamics continue to evolve,” the company said.
Last year the group redesigned its range of drinks to cut sugar content ahead of the new UK soft drinks sugar tax that came into effect in April.
What the company said
Chief executive Roger White said: "At the outset of 2018 we set out a clear strategy and specific actions which we believed were required to deliver continued financial success during what we forecast to be a year of significant changes across our industry. I am pleased to report we have delivered another strong financial performance having adapted well to both the circumstances we anticipated and those which were less expected.
It is with this backdrop in mind that I emphasise the flexibility and strength of our business model, people and brands, all of which continue to deliver consistently.
We have grown revenue by 8.0% and 5.6% respectively over the past two years reflecting the growth potential of our business. Whilst the uncertainty across the UK economy is likely to prevail for the foreseeable future, we have consistently demonstrated over the long-term that our strategy and execution are fit for purpose and resilient. The markets in which we operate are robust and provide us with continued opportunities to grow.
We have exciting plans to deliver across the Group and are confident of continuing to make further progress in the coming year."