AG Barr has reaffirmed its full-year profit guidance despite supply chain disruptions that weighed on a strong revenue performance in the UK soft-drinks group’s first half.
In a trading update today (4 August), the Irn-Bru maker said its revenue for the 26 weeks ended 1 August is expected to be around £246m ($330.8m), up 8% on the same period last year
AG Barr said it was “pleased” with its performance but acknowledged its second-quarter revenue was affected by reduced stock availability. The disruption was mainly linked to internal supply-chain issues tied to a “capability and capacity change programme” and worsened by external issues related to third party manufacturing, the group added. AG Barr estimated the problems hit its first-half revenue by roughly £10m.
The group will report interim results on 29 September. The company said it expects an “improved revenue performance” in its second half driven by “market share gains, encouraging innovation performance and supply chain actions”. It is also forecasting “double-digit percentage revenue growth” for the full year.