AG Barr sales fall

The company blamed bad weather in Scotland and the north of England and a cutting of first half promotional activity compared to 2014, last year it sponsored the Glasgow 2014 Commonwealth Games, for the drop in sales.

The Cumbernauld-based firm said sales for the six months to July 25 were expected to be 5% lower than the prior year at £128m. It said on an ongoing basis with allowances for the loss of Orangin and divestment of Findlays, sales were down by about 3.5%.

“Our Business Process Redesign project (BPR) and the subsequent transition to a new company-wide system platform in early-June has, as expected with a project of such scale and complexity, given us some short-term customer service challenges, which have also impacted our overall revenue performance”, Barr noted.

It said steps taken in the last six months including closure of its site in Trededgar, south Wales, further development of its factory in Milton Keynes, and acquisition of the Funkin cocktail drinks business would lay foundations for further growth.

But the soft drinks giant insisted sales momentum would pick up in the second half, allowing it to meet its expectations for the full year, it said in a pre-close trading update.

The group reiterated that its financial performance will be weighted to the second half and, while it expects the competitive trading environment to prevail, it still expects to meet its expectations for the year if current conditions continue.

The company will announce its interim results on 22 September.