Irn-Bru maker AG Barr enjoys frothing profits
Irn-Bru maker AG Barr's annual profits fizzed 13% after a sparkling performance in the UK soft drinks market.
Sweet drink: Increasing demand in the north of England particularly
The Cumbernauld-based business - which also makes St Clements, Tizer and Rubicon fruit drinks - said like-for-like sales rose by more than 10% for the second year running, helping it deliver pre-tax profits of £31.6m in the year to January 29.
It lifted shares by 25p (2.2%) this morning to 1,180p.
AG Barr said it outperformed a 'buoyant' soft drinks market by focusing on its core brands, Irn-Bru and Rubicon. But the year ahead looks tough, with soaring input costs and consumer caution adding to tough sales comparatives.
While Scotland remains the historical heartland for Irn-Bru sales, AG Barr saw increasing demand elsewhere across the UK, with sales in the north of England rising 10% thanks to marketing and sponsorship efforts, specifically surrounding rugby league. Total Irn-Bru sales rose 4%, according to the group.
An ongoing association with cricket and new launches helped Rubicon sales soar 22.5% in the year. Sales of Rubicon have now nearly doubled since it bought the brand in August 2008. It recently launched Rubicon Light and said it had also introduced other new flavours across its portfolio, such as Barr Orangeade.
However, AG Barr said product developments were reined in as cautious consumers have tended to stick with established brands they 'know and trust'.
Chief executive Roger White gave an upbeat outlook for the business in 2011 despite the headwinds and confirmed sales in the first eight weeks so far since the end of January were ahead year-on-year.
He said: 'The soft drinks sector will face tough comparative trading across 2011, as well as further cost volatility and general economic uncertainty. However, we face these challenging conditions with good momentum.'
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