AG Barr posts half-year sales growth despite £10m supply chain hit

AG Barr has reported an 8% uplift in revenue year-on-year to £246m in the 26 weeks to 1 August.

The uplift came despite supply chain operational issues, which resulted in reduced stock availability and wiped £10m in sales off its balance sheet.

The beverage supplier said the problem, which stemmed “primarily from internal supply chain issues linked to our capability and capacity change programme” had now been resolved.

As a result, alongside market share gains, the business said it would have an improved revenue performance in the second half of the year and that it expected to deliver double-digit percentage revenue growth.

AG Barr integrated Fentimans and Frobishers, which it acquired in February, into the business during the financial period.

Chief executive Euan Sutherland said: “During the first half of the year we made significant progress against our strategic priorities. We completed the integrations of both Frobishers and Fentimans, continued to successfully drive our core brand propositions and made further progress with our manufacturing investment programme.

“Consumer demand for our brands is strong, with all core brands gaining market share. The supply constraints which impacted Q2 performance are being resolved and, with strengthening trading momentum driven by our refreshed core brands and new product development, we remain confident for the full year.”