AG Barr pulls dividend; Poor summer hits FY profits

AG Barr scrapped its dividend, saying sales of its iconic Irn-Bru fizzy drink had dropped significantly due to the coronavirus lockdown while profits fell on the back of a poor summer weather in 2019.

The Scotland-based firm said soft drink sales from "impulse" customers, which make up 40% of revenue, had significantly reduced as the government closed all shops apart from essential suppliers such as supermarkets and pharmacies.

Take-home purchases remained more resilient although sales since March 23, when the lockdown began, had been more volatile than usual.

Full year pre-tax profit fell 16% to £37.4m on revenue 8.4% weaker at £255.7m, the company said on Wednesday.

“Possibly the biggest impact on soft drinks this year was the weather, with an average summer following on from the hottest summer on record in 2018. Consumption levels fell across the market, with most soft drinks sub categories declining,” it added.

Executive and boardroom pay was cut by 20% and a “limited number” of staff had been furloughed under the government's scheme to pay 80% of salary. The company’s factories in Cumbernauld and Milton Keynes remained open.

“It is our aim to maintain supply into our customers for as long as there is demand in the market and as long as government guidance permits,” said chief executive Roger White.