AG Barr shares (LON: BAG) surged over 10% on Tuesday morning, despite a fall in revenue.
The Irn-Bru owner posted a 7.6% fall in revenue to £113.2m and statutory profit before tax of £5.1m, which fell from £13.5m a year previously.
“We remain on course to deliver a full year performance in line with the revised expectations we communicated in the July 2020 trading update. We have continued to invest in our core brand equity for the long term, maintained our quality and service standards and remain a profitable and cash generative business in a robust drinks sector. We are confident that our business will continue to prove its resilience for the balance of this year and beyond,” said the group’s chief executive, Roger White.
The soft drinks producer has withheld its dividend, which are expected to resume in 2021.
“Irn-Bru is still getting AGBarr through, as its best-known brand, but basing its second half projections on the UK not entering a significant second lockdown period may prove optimistic given the direction of travel in the last week or so. Nevertheless, the business remains robust and, with a strong cash position, it is in a good position to weather current conditions,” said John Moore, senior investment manager at Brewin Dolphin.
The group has said that in order to simplify its portfolio, it will end the production of its Snapple and Rockstar drinks.