Irn-Bru maker AG Barr sees stronger second half as supply woes ease

AG Barr Forecasts Stronger Second Half as Supply Disruptions Subside

AG Barr's Financial Performance and Supply Chain Update

First-Half Challenges and Revenue Impact

Sept 29 (Reuters) - Irn-Bru maker AG Barr reiterated its annual forecast on Tuesday and projected stronger second-half revenue and profit as peak-season supply chain issues eased and underlying consumer demand for soft drinks remained resilient.

Supply Chain Disruptions

• Internal supply chain disruptions in the second quarter and third-party manufacturing bottlenecks knocked approximately £10 million off AG Barr's first-half revenue

Resolution of Summer Disruptions

• Summer supply disruptions have been resolved, with supply chain operations normalising heading into the second half, the company said

Outlook for the Second Half

Growth Expectations

• It expects increased percentage growth for both revenue and profit in the second half compared to the first, and said is on track to hit its annual targets

Financial Highlights

• Adjusted profit before tax rose 2.6% to £36.1 million for the six months ended June 30 and revenue climbed 8.5% to £247.4 million, driven by warm summer weather

Brand Performance

• The company noted that while the shortages had made it hard to keep up with store orders during the summer, newly acquired brands Fentimans and Frobishers helped offset the lost revenues

Production Strategy

• The drinks maker is bringing more production under its own roof to ease external supply constraints

(Reporting by Amna Mariyam in Bengaluru; Editing by Subhranshu Sahu)