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Glasgow Live
Glasgow Live
National
Sarah Ward

Irn-Bru makers reveal sales profits after change to original recipe

Irn-Bru makers have revealed an increase in sales profit figures despite a change to the original recipe.

AG Barr were forced to cut sugar from their drinks in April last year following the introduction of the controversial sugar tax.

The manufacturer, which also makes Rubicon and Tizer, saw full-year turnover increase by 5.6 per cent, to £279 million, despite changing the recipe - sparking fury from die-hard fans of Scotland's other national drink.

Pre-tax profit was £44.5m for the year to January 26, down from £44.9m.

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The result takes into account a one-off pension service charge of £700,000.

Stripping out exceptional items, profits nudged up 2.5 per cent to £45.2m.

A final dividend of 12.74p per share has been proposed to give a total dividend of 16.64p, an increase of seven per cent over the prior year.

Barr said the results were "all the more pleasing" given the UK government's sugar levy, which has hit the entire soft drinks industry.

It also had to contend with carbon dioxide shortages during the summer heatwave, the Beast from the East snow disruption, and a number of business failures and ongoing customer credit risks.

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Chief executive Roger White said: "I am pleased to report we have delivered another strong financial performance having adapted well to both the circumstances we anticipated and those which were less expected."

"It is with this backdrop in mind that I emphasise the flexibility and strength of our business model, people and brands, all of which continue to deliver consistently."

Alasdair Ronald, senior investment manager at Brewin Dolphin Scotland, said: "AG Barr's results are broadly in line with expectations.

"There has been a lot of uncertainty for AG Barr in the last year or so: as well as the sugar tax, there's the possible introduction of a return scheme for plastic bottles, the small matter of Brexit, and the generally negative retail and consumer outlook."

 
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