The maker of Irn-Bru and Rubicon drinks has warned of a 20% drop in annual income after being hit by using poor climate and the impact of final yr’s sugar tax.
AG Barr, which also makes Rockstar energy liquids and Funkin fruit cocktail mixers, blamed disappointing spring and early summer season weather, mainly in its Scottish heartland and the north of England, which contrasts with last year’s long, hot summertime when income surged.
Roger White, the AG Barr chief govt, said: “The impulse on-the-move market isn’t always developing, pushed through the weather. The weather has been much less precise than the long-time period average. There are a few huge yr-on-yr challenges.”
AG Barr’s shares crashed 30% to 616.8p.
The Cumbernauld-based gentle drinks company reduce expenses remaining year to enhance sales and stated sales this 12 months were affected by a go back to its standard charges.
The firm modified the “secret recipe” of its flagship Irn-Bru drink to lessen its sugar content material before the brand new tax got here into pressure in April 2018, in conjunction with the formulas of Rockstar, Rubicon and different drinks. Nearly all its merchandise escaped the sugar levy but a few customers were put off with the aid of the modifications.
AG Barr said its new Irn-Bru strength drink and Funkin ready-to-drink cocktails in cans were promoting well. It plans to release 3 new Rockstar drinks at the quit of the summer season and to enhance the recipe of its Rubicon juices, confronted with tough opposition from Monster Energy, owned by using Coca-Cola, and a declining fruit drinks market.
However, the benefits will no longer be felt till later this year and AG Barr expects revenues of £123m within the six months to 27 July, down 10% from remaining yr. Profits inside the complete year are probably about 20% lower than last yr’s £45m. AG Barr warned that action to regain momentum might bring about additional one-off costs.