AG Barr (LSE:BAG) PLC announced a strong performance for the year to end-January with profit and revenue beating guidance despite the introduction late in the year of new pandemic restrictions following the emergence of the omicron variant of coronavirus.
The maker of IRN-BRU and Rubicon soft drinks and Funkin cocktails said revenue for the 53 weeks to 30 January 2022 is expected to come in at around £267mln, a rise of 17.5% compared to the prior year and marginally ahead of the £264mln guidance issued in November. The figure also exceeds the £255.7mln achieved in pre-pandemic 2019/20.
Profit before tax and exceptional items is also expected to be marginally ahead of previous guidance of £41mln, on the back of an improvement in the operating margin before exceptional items to 15.6% from 14.8%.
"We plan to further invest in our business in 2022/23 and remain confident in our ability to deliver continued growth in both revenue and profit in the coming year," said CEO Roger White.
The company said its Barr Soft Drinks and Funkin businesses traded well last year, particularly during the periods when restrictions were eased.
It has introduced cost controls and raised prices to mitigate against inflationary pressure on packaging and energy-linked commodities and said it will continue to look at ways to offset the impact of rising costs after UK inflation hit its highest level for 20 years.
Strong cash generation throughout the period meant the company ended its financial year with around £66mln of net cash.
Shares rose 1.82% to 504.00p in midmorning trade.