AG Barr PLC (LON:BAG) said it expects revenue for the year to next January to fall by 12%-15% on the prior period assuming the UK does not enter another coronavirus pandemic lockdown.
Revenue for the six months to July 25, 2020, is expected to drop by 8% to £113mln, with a 12% slide in the second quarter, the fizzy drinks manufacturer said in an update.
READ: AG Barr warns on sales due to lockdown measures
The Irn Bru producer said it has seen a slow recovery in the hospitality and 'on the go' consumption segments as restrictions ease, also aided by good weather.
All staff will be brought back from furlough by the end of July, while the firm will not make use of the £1,000 job retention bonus offered by the government.
“In the face of the closure of the UK Food & Beverage channel and considerable disruption to convenience and mainstream grocery activity, we see Barr trading and our forecasts as underscoring the resilience, agility and high quality of this proprietary business with great heritage and, we believe, much brighter times to come,” analysts at Shore Capital commented in a note to clients.
AG Barr shares rose 1% to 436.5p on Tuesday morning.