AG Barr PLC (LON: BAG) bubbled higher on Tuesday despite the Scottish fizzy drinks maker’s softer first-half profits.
The FTSE 250-listed manufacturer of Irn-Bru and Rubicon reported revenues down 11% to £122.5mln and profit before tax declining 24% to £13.9mln in the six months to 27 July, but this can of fizz had already been opened in a profit warning back in July.
READ: After AG Barr’s profit warning is it time to can the Irn-Bru maker?
Back then, the soft drink maker blamed last year’s “unprecedented year” for the industry, with the long, hot summer and introduction of the Soft Drinks Industry Levy that had provided a one-off boost in sales.
So, although volumes in the first half declined 4.1%, chief executive Roger White said that this and the half-time profits were in line with expectations for a fall in full-year profits of up to 20%.
White said: "Our focus remains on delivering long-term growth. We have plans in place to address our specific brand-related challenges and are ensuring that the business is appropriately scaled to perform in the current market.”
He expects the second half to be boosted by the launch of Irn-Bru Energy in July, to an “encouraging” trade and consumer response, with plans to release three new Rockstar energy drinks in the autumn and improve the recipe for Rubicon juices.
Shares were trading at 625.9p on Tuesday morning, up 7% on the day.