AJ Barr to resume dividend in coming year
AG Barr (LON:BAG), owner of Irn Bru and Rubicon, confirmed on Tuesday that its profit and revenue dropped during 2020 following a turbulent year of business.
The company’s revenue came in at £227m for the year, down by 11%, while pre-tax profit fell by 12% to £32.8m.
The business was impacted by the coronavirus pandemic in March 2020 as the UK first went into lockdown. AG Barr’s ‘out of home’ sale of its soft drinks dropped, which saw its revenue fall by 9.1% in the first quarter of the year.
While at points the company did see sales surge, especially during the summer, further lockdowns hit the business hard as revenue fell by 14.6% during the second half of the year.
The firm retains a sense of optimism moving forward and even outlined plans to resume its dividend during the coming financial year.
Roger White, chief executive, commented on the company’s results while looking ahead:
“We delivered a resilient financial performance in a year that was difficult for all. I am extremely proud of everyone in our business for their commitment and flexibility, which allowed us to remain fully operational throughout the pandemic,” White said.
“Across the year, we continued to focus on our key strategic initiatives. We have significantly progressed our multi-beverage strategy, extended our reach into new channels and accelerated our roadmap towards net zero, which we aim to deliver by 2040. We closed the year in strong financial health, with our brands and business poised for growth on a like for like basis, and with the clear intention to recommence dividend payments in 2021.”
“Whilst there now appears to be a route out of lockdown, the immediate future remains uncertain. Notwithstanding this current backdrop, our strategy for the year ahead is to support our core growth initiatives with significant investment.”
“We have exciting plans to deliver across the Group and are confident of continuing to make further progress in the coming year.”