Irn-Bru maker AG Barr sees stronger second half as supply woes ease

By Reuters News

- Irn-Bru maker AG Barr BAG.L reiterated its annual forecast on Tuesday and projected stronger second-half revenue and profit as peak-season supply chain issues eased and underlying consumer demand for soft drinks remained resilient.

  • Internal supply chain disruptions in the second quarter and third-party manufacturing bottlenecks knocked approximately £10 million off AG Barr's first-half revenue

  • Summer supply disruptions have been resolved, with supply chain operations normalising heading into the second half, the company said

  • It expects increased percentage growth for both revenue and profit in the second half compared to the first, and said is on track to hit its annual targets

  • Adjusted profit before tax rose 2.6% to £36.1 million for the six months ended June 30 and revenue climbed 8.5% to £247.4 million, driven by warm summer weather

  • The company noted that while the shortages had made it hard to keep up with store orders during the summer, newly acquired brands Fentimans and Frobishers helped offset the lost revenues

  • The drinks maker is bringing more production under its own roof to ease external supply constraints

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