AG Barr PLC (LON:BAG) said it expects to resume dividend payments in 2021 despite uncertainty around the pandemic.
The soft drinks producer confirmed its earlier forecast that revenue for the year to next January will fall by 12%-15% on the prior period assuming the UK does not enter another lockdown.
READ: AG Barr expects 12-15% full-year revenue slip as hospitality sales recover slowly
A “modest” reduction in operating profit margin reflecting the impact of the crisis would be mitigated by the ongoing overhead cost savings.
In the six months to July 25, revenue slipped 8% to £113mln with profit before tax down 62% to £5mln due to impairment of brands, goodwill and property. Net cash at period-end was £30mln.
"A very strong outturn demonstrating the resilience of the brands and the agility of the model to flex its pack and format mix to the challenges the group faced due to COVID," analysts at Liberum commented.
Shares jumped 8% to 402p on Tuesday morning.
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