Sign up Australia
Proactive Investors - Run By Investors For Investors

Rain and falling pound to dampen fortunes at AG Barr

Soft drink maker forecasts fall in first-half revenue
A taxi advertising Irn-Bru
Chief executive Roger White said costs were likely to rise in 2017

Wet weather and the plunge in the pound after 'Brexit' are set to take the fizz out of the fortunes of soft drinks maker A.G. Barr plc (LON:BAG).

Barr said rain in June and the early part of July is likely to hit the overall drink market in the first half of its financial year.

The company said trading had been highly competitive and it expects like-for-like revenue in the six months to fall 2.9% from a year earlier to £125mln.

In response to the government's imposition of a sugar tax on soft drinks, Barr has introduced a new zero-sugar version of its flagship Irn-Bru brand.

It has also launched low or zero-sugar versions of other drinks such as Rubicon and Snapple Iced Tea.

Chief executive Roger White said costs were likely to rise in 2017 as a result of the fall in the pound to 31-year lows following the EU referendum result.

"The decision of the UK to leave the EU has resulted in a degree of economic uncertainty and a weakening of sterling," he said.

"The balance of the summer will remain an important trading period; however, assuming market conditions improve and our robust second-half plans deliver, we expect to meet our full-year profit expectations."

Shares in Barr fell 1.61p to 534.39p in early London trading.

View full BAG profile View Profile

AG Barr Timeline

September 27 2016

Related Articles

April 17 2018
The group's major shareholders have staunchly supported the business while the AIM-listed group sorts out its financial position

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use