Irn-Bru maker AG Barr says supply chain issues lost firm £10m in sales

Russ Mould, investment director at AJ Bell, says AG Barr’s first-half trading update fell flat after supply chain issues lost the firm £10m in sales.

He said: “AG Barr’s first-half results were lacking in fizz and left the shares flat.

“The company still has some making up to do with the market after August’s revelation that it would take a £10 million hit from issues in its supply chain.

“At least Barr was able to provide some reassurance on the full-year outlook – reiterating guidance on revenue growth and margins.

“A hike in the dividend reaffirmed the company’s cash generating credentials and management’s confidence in the outlook despite a tricky consumer backdrop.

“Barr will hope that people are still prepared to splash out on a can of soft drink as a regular affordable treat even when household budgets are under pressure.

“To this point, its core brand Irn-Bru outperformed the wider soft drinks market but the weakness in its Funkin cocktail business saw an appreciable drop in sales.”