Irn-bru maker AG Barr said it expected profit within the top end of market forecasts amid signs of progress on efforts to turnaround the business following a challenging summer.
Adjusted pre-tax profit was expected to be just ahead of £37m, with revenue at about £255m, down from £279m last year, the company said.
The relatively upbeat forecast followed challenging trading conditions during the year, particularly across the summer period, when volumes came under pressure from the introduction of the sugar tax, CO2 shortages and adverse whether.
But the company adjusted its promotional and pricing position to align more closely with the market. This weighed on volumes, but delivered an increase in average realised prices. ‘We have completed the first phase of our business re-engineering programme. The associated exceptional costs in the period of £1.5-to-£2m are expected to be almost entirely offset by a one-off exceptional gain related to the removal of a wind turbine at our Cumbernauld site,’ AG Barr said. ‘The external landscape remains challenging, however we exit the year with encouraging trading momentum which we expect to continue into 2020,’ It added.