StockMarketWire.com - Irn-bru maker A.G. BARR warned on profits as performance during the year undershot its expectations amid adverse weather and challenges at some of its brands.

The company said it expected profits for the year to slip by as much as 20% from the prior year.

This comes despite the company carry out a plan to boost volume growth after an unprecedented year for soft drinks in 2018, following the introduction of the Soft Drinks Industry Levy (SDIL) alongside CO2 shortages and a long, hot summer.

The plan to offset the impact from a fall in volumes in the first five months of the year did not materialise as expected.

The company also blamed weaker performance in some specific brand challenges, particularly in Rockstar energy and Rubicon juice drinks, as well as 'disappointing' spring and early summer weather, most notably in Scotland and the north of England.

'While we anticipated that volume would be impacted by this return to our traditional pricing strategy, trading in the financial year to date has been below our expectations,' it added.

For the 26 weeks to 27 July 2019, revenue was estimated to be in the region of £123m, representing a circa 10% decline on the prior year's £136m.

'Weather comparatives and trading, particularly in the impulse on-the-go market, have been even tougher than expected which, along with some brand specific challenges, have led to a short-term impact on our financial performance,' said Roger White, Chief Executive Officer.

But there was some optimism, with the company hailing the performance of Funkin, which 'continues to perform strongly and the recent launch of nitro-infused premium cocktails in cans is already exceeding expectations.'


At 8:35am: [LON:BAG] Barr A G PLC share price was -260.5p at 608.5p



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