Irn Bru owner AG Barr suffers revenue hit amid coronavirus crisis
AG Barr, the maker of Irn Bru and Rubicon, warned this morning that full-year revenue will be down as much as 15 per cent due to trading volatility during the coronavirus crisis.
The drinks manufacturer said revenue for the year ended January 2021 is expected to slump 12 per cent to 15 per cent compared to the previous year.
The forecast is based on the assumption that the government will not impose a second UK-wide lockdown.
AG Barr’s revenue for the 26 weeks ended 25 July was £113m, an eight per cent drop on the previous year.
For the three month period from April to June, at the height of lockdown, revenue declined 12 per cent, although warm weather offset some of the sales impact of closed hospitality venues.
Sales in the hospitality and ‘on the go’ segments have begun to slowly recover as lockdown measures have lifted, AG Barr said.
The company also confirmed that it will stop using the government’s furlough scheme by 31 July, and does not intend to accept the additional return to work bonus initiative.
Chief executive Roger White said: “I am incredibly proud of how our teams across the business have responded to the Covid-19 pandemic.
“These have been difficult times for everyone however, despite the challenging environment, we have maintained our quality and service standards, thanks to the dedication and adaptability of our people.
“We are a profitable and cash generative business in a robust drinks sector and I am confident that our business will continue to prove its resilience for the balance of the year and beyond”.