Irn-Bru maker sees profits hit by Covid restrictions

Irn-Bru maker AG Barr has reported a slump in annual profits after lengthy coronavirus restrictions hit sales in pubs and across the hospitality sector.

The Cumbernauld-based soft drinks group said pre-tax profits fell by 30.5% to £26m for the year to 24 January, while sales were down by 11.2% to £227m.

This was despite surging trade at supermarkets and convenience stores.

Second-half sales dropped by 14.6% following pandemic restrictions imposed in December.

The group also attributed the profits slump to the end of its contract to sell and distribute Rockstar energy drinks in October.

AG Barr kept dividends on hold, having paused them last April, but said it remained "committed" to restarting payouts to shareholders in the current 2021-22 financial year.

Future 'uncertain'

Chief executive Roger White said: "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."

AG Barr said it was benefiting from the trend for locked-down Britons to drink cocktails at home, which is boosting demand for its Funkin ready-to-drink cocktails.

It is also investing in the growing energy drink market, recently launching Rubicon Raw Energy and driving sales for its Irn-Bru Energy brand.

• RULES: What are the restrictions in your area?

• LOCKDOWN: Six months that changed our lives

• CASES: Where are the latest cases in Scotland?

• WHO? The people who have died with Covid-19