Irn-Bru maker A.G. Barr upgrades profit expectations despite hospitality closures hitting revenues

The company is behind Irn-Bru and Rubicon (Bloomberg)

(Bloomberg)

Irn-Bru maker A.G. Barr has upgraded its full-year profit expectations despite seeing revenues hit by the closure of hospitality over Christmas and into January.

The listed firm, which also makes juice brand Rubicon, released a trading update on Tuesday for the year ended January 24. Bosses said that they expect to see revenues of £227 million for the 2020/21 financial year, down from £255.7 million in 2019/20 - “marginally ahead” of previous guidance issued.

In the statement, the company said: “COVID-19 developments since early December 2020, in particular increased social restrictions across the UK and the entry into full lockdown in January 2021, are now having an impact, most notably in the hospitality and “drink now” categories.”

Executives said the company remained “strongly cash generative throughout the year” and that autumn saw trading “at the upper end” of scenario plans. The firm expects “profit before tax and exceptional items performance ahead of market expectations”, and to end the year with £50 million in net cash.

Boss Roger White said he is “pleased with the performance we have delivered against a very difficult backdrop”.

He said: “We expect the months ahead to be challenging for everyone, however I remain confident in our ability to navigate these very uncertain times.”

Shares were up 0.4% on Tuesday morning.

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