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AG Barr reports 4.3% profit increase

AG Barr reports 4.3% profit increase

AG Barr has announced a surge in profits as part of the publication of its full-year financial results.

The Irn-Bru brand owner saw a 4.3 per cent rise in profits before tax to £35 million, putting it in good stead ahead of its merger with Britvic. On top of the positive results the company also posted a 6.6 per cent increase in turnover to £237.6 million in the year ending January 26th and its various products have been highlighted for strong performance.

Along with Irn-Bru, Rubicon, KA and Rockstar showed positive results with the energy drink proving a particular driving force behind the figures.

Britvic and AG Barr recently announced that they had reached an agreement on a merger following lengthy negotiations. The completed deal will see the companies renamed Barr Britvic Soft Drinks, with a turnover of £1.5 billion and officials from both sides predicted that the partnership would produce synergies of £40 million a year. However, it was not all good news, as the merger could potentially lead to the loss of 500 jobs from a combined workforce of 4,000 employees.

In terms of AG Barr's financial results there was a slight dip in profit margins as the cost of inputs, especially sugar, increased significantly over the course of the year. The company is also pressing ahead with the creation of a new production and warehouse facility in Milton Keynes, which is due to be up and running by summer 2013.

Roger White, chief executive officer, said: "AG Barr has delivered a robust financial performance and continued to grow well ahead of the UK soft drinks market in the period. This once more proves the resilience of our operating model and the potential of our brands. Across the year, market conditions have remained difficult, specifically impacted by poor summer weather and further cost of goods inflation."

He added that the company continued to perform well even despite the "merger distractions" which were currently surrounding its operations.

 

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