Tough year for Irn-bru

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Manufacturing News, Source : TheManufacturer.com
Published : 26 Mar 2007 9:28
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Irn-bru soft drinks maker A G Barr admitted today that it had experienced a tough year of uncomfortable change, but had emerged all the stronger.

Reporting its performance for the year ended 27 January, chief executive Roger White said it had been “a challenging but ultimately successful year” during which it was able to report a strong financial performance.

Pre-tax profit before exceptionals exceptional was up 6.7 per cent to £19.1 million (2006: £17.9m) on sales that increased 10.2 per cent to £141.9 million (2006: £128.8m).

Other highlights included the June acquisition of Strathmore Water.

But White said a huge amount of operational change over the year had “stretched the business”. Changes had included the completion of its Cumbernauld selling, distribution and warehouse facility, the closure of six Scottish operating sites, the purchase and commencement of installation of a new high speed can line at Cumbernauld, the closure of its Atherton site and the closure of the Bristol sales depot.

On products, White said weather patterns had masked the continued shift in consumer behaviour. Still drinks, water and fruit juice experienced higher levels of growth than that achieved by carbonates. “We continue to make good progress in adapting our business to match consumers' needs, “ he said. “During the past 12 months we have accelerated the increase in the proportion of still products in our business. At the same time we have seen our carbonate brands

continue to grow despite the challenging environment.”