AG Barr sees revenues fall 8% amid market volatility

Cumbernauld-based drinks company AG Barr has posted a year-on-year drop in revenues as the coronavirus pandemic continues to wreak havoc on firms across the UK.

AG Barr sees revenues fall 8% amid market volatility

In a trading update, AG Barr revealed that revenues for the 25 weeks to the 35th of July dropped by 7% on the previous year to just £113 million. Between April and June of this year, sales also suffered a 12% decline on the same period in 2019.

AG Barr said that it ended the 2019/2020 financial year with an encouraging sales performance which continued into the first 8 weeks of the new financial year.

However, the firm said that following the UK-wide commencement of lockdown on 23 March 2020, it entered a period of significant trading volatility, initially characterised by consumer stockpiling and then a general shift towards larger, less frequent take-home purchasing.

AG Barr added: “We were also exposed to the complete closure of the hospitality sector as well as a material reduction in the “out of home” consumption of soft drinks. While these shopping and consumption patterns continued throughout the ‘full lockdown’ period across April, May and June, we believe sales benefited from the favourable weather during this time. As lockdown measures have recently started to ease, we are seeing sales in the hospitality and ‘on the go’ consumption segments beginning to recover, albeit slowly.”

The firm said that the business had responded well to the challenges it has faced and delivered a “creditable performance in the first 6 months of trading”.

Roger White, chief executive officer, commented: “I am incredibly proud of how our teams across the business have responded to the COVID-19 pandemic. These have been difficult times for everyone however, despite the challenging environment, we have maintained our quality and service standards, thanks to the dedication and adaptability of our people.

“We are a profitable and cash generative business in a robust drinks sector and I am confident that our business will continue to prove its resilience for the balance of the year and beyond.”

  • Read all of our articles relating to COVID-19 here.
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