The maker of Irn-Bru didn’t get a boost from patriotic Scots in the run up to the vote on independence but instead saw sales soar during Glasgow’s 2014 Commonwealth Games.
Scottish fizzy drinks-maker AG Barr reported a 5.4% jump in sales to £135.7 million for the half year to the end of July and pre-tax profit rose 14.6% to £19 million.
Chief executive Roger White said: “We have benefited from the execution of our Commonwealth Games sales and marketing plans” but added that sales did not get a lift from the Scottish referendum.
The group’s licence to sell Orangina ended and, taking this into account, pre-tax profits rose 11% to £18.4 million. But it won a new 10-year contract, to start in the new year, with the Dr Pepper Snapple group to sell Snapple in the UK and parts of Europe.
White said August’s poor weather — when compared with last year’s exceptional summer — made growth comparisons tough and added that price pressure from supermarkets increased. He said: “It is a tricky environment and there is lots of dynamism. Retailers have to make sure they provide good value.” But he said AG Barr was “somewhat insulated” as it sold through multi-channels including smaller retailers. It raised its interim dividend by 10.1% to 3.11p.
