Soft drinks group, AG Barr has announced its trading update covering the period from 26 July 2015 to date, which shows a return to growth after the first half of the financial year saw turnover dip from £135.7m to £130.3m as a result of poor weather, tough prior year comparisons and growing competition in the market.
Revenue from the ongoing business for the 18 weeks to 28 November 2015 increased by 3.9% compared to the equivalent period last year. Year to date revenue from the ongoing business, as at 28 November, declined by 0.2%. Year to date revenue on a reported basis declined by 2.2%
As the firm anticipated, the revenue performance in the third quarter has gained momentum as it put the specific challenges of the first half behind it and returned to its long-term growth strategy.
The balance sheet remains strong and there have been no significant changes in the financial position of the company since the publication of the Interim Accounts for the six months ended 25 July 2015.
AG Barr continues to deliver against its operational investment and efficiency programme. The warehouse expansion project at thee Milton Keynes site is nearing completion and good progress is being made on the production capability projects at both Milton Keynes and Cumbernauld, which will provide increased flexibility and support future innovation opportunities.
Now entering the important festive trading period, the firm anticipates the marketplace will remain highly competitive. However, its sales execution activities are well developed and, as previously stated, assuming satisfactory Christmas trading, the company remains on track to meet the Board's expectations for the year.