AG Barr PLC (LON:BAG) saw its most famous brand, Irn-Bru post its ‘biggest ever year of sales’ in spite of worries over a reformulation of the fizzy drink to offset the impact of an impending sugar tax in the UK, helping it report solid gains in full-year profits,m revenue and dividends.
The FTSE 250-listed soft drink maker reported full year pre-tax profits up 4.2% to £44.9mln as overall revenue increased by 8% to £277.7mln, and raised its final dividend to 11.84p from 10.87p the year before.
READ: JPMorgan takes some of the fizz out of AG Barr, downgrades to 'underweight' on sugar levy concerns
The biggest story, however, was the strength in Irn-Bru sales, which jumped 8% during the year, the biggest year of sales for 'Scotland's other national drink'. The group also said Rubion and Funkin brand sales were up 5.3% and 25% respectively.
The company said strong core brand trading and "continued successful innovation" accelerated growth across the soft drinks portfolio, resulting in the firm "significantly" outperforming the market.
Roger White, AG Barr's chief executive, said: "The UK economic landscape is expected to remain uncertain for business as a whole, with regulation, changing customer dynamics and consumer preferences adding further volatility for the soft drinks industry,"
He added: "We have a strong and flexible business model and a growing portfolio of brands, both established and nascent, which reflect the requirements of today's changing consumers. We remain confident in our ability to capitalise on the opportunities to grow our business and deliver long-term value to shareholders,"
In mid-morning trading, AG Barr shares were up 3.4% at 636p.