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Trading statements

AG Barr on track in highly competitive market

01 February 2017 07:22

Hello £££££ Soft drinks group AG Barr's operating margins for the financial year ended 28 January remained in line with its expectations.

The group said the UK soft drinks market remained highly competitive, with the latest IRI data for the 48 weeks to 1 January showing value up c.1% and volume up c.1.5%.

An update said: "Our second half trading performance strengthened, supported by successful product innovation, specifically through the launch of IRN-BRU XTRA and Rubicon Spring.

"Revenue for the 52 weeks ended 28 January 2017 is expected to be around £257m. On a like for like basis revenue growth from ongoing business* is anticipated to be c.1.5%.

"We have maintained tight control of our costs and, in the final quarter, successfully implemented a company-wide re-organisation that has both enhanced our organisational capability and reduced our overhead base.

"The operating margin for the financial year remains in line with our expectations.

"Our balance sheet is robust, supported by strong free cash flow. We continue to develop the business for the long term and are pleased to announce plans to invest £10m in PET capability at our Milton Keynes facility, building on our already well-invested asset base to further improve efficiency and flexibility.

"We believe that the combination of strong trading execution, successful innovation and tight cost control will enable us to meet our profit expectation for the year ended 28 January 2017."

Looking ahead it said the uncertain economic environment indicated that 2017 would be another challenging year for UK based businesses.

But it added: "Our strong and flexible business model, our differentiated brands and our well-invested asset base ensure we are well placed to continue to deliver long-term value to shareholders."

Story provided by StockMarketWire.com

Related Company: BAG

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