Irn-Bru Maker Sees Lower Annual Revenue On Lockdown Hit
AG Barr, which is best known for Scottish fizzy drink Irn-Bru, has said that it expects revenue to fall by up to 15% this year, while reporting a recovery in some sectors, including hospitality, as coronavirus curbs eased in recent weeks.
The FTSE-250-listed soft drinks maker said that the outlook is based on the company's assumption that the UK will not enter into a further significant period of lockdown, along with estimated adjustment for Rockstar energy drink no longer being part of its portfolio for the final quarter.
Also, AG Barr is unlikely to see an impact from the UK government's recent measures to tackle obesity, including banning online and TV adverts for junk food before 9pm, as the company has already been reducing sugar in its drinks.
It expects revenue to be approximately 8% lower at £113 million for the 26 weeks ended July 25 due to the lockdown that had shut restaurants, bars, cinemas and other public places. Its Funkin cocktail mixer brand has also been materially impacted.
"A Period Of Significant Trading Volatility"
"Following the UK-wide commencement of lockdown on March 23, we entered a period of significant trading volatility, initially characterised by consumer stockpiling and then a general shift towards larger, less frequent take-home purchasing," the Cumbernauld-headquartered company said.