Revenue for the year at Scottish drinks producer AG Barr is expected to be around £227m, marginally ahead of the revised guidance issued in September, but down on the previous year's figure of £255.7m.
Operating margin before exceptional items across the full financial year is expected to be in line with the prior year, leading to a profit before tax performance ahead of market expectations.
In the first four months of the second half last year, trading was at the upper end of scenario plans, however, Covid-19 developments since early December - in particular increased social restrictions across the UK and the entry into full lockdown in January - are now having an impact, most notably in the hospitality and 'drink now' categories.
The Irn-Bru producer stated that business has remained "strongly cash generative" throughout the year and it expects to end the year with circa £50m net cash in the bank.
Chief executive Roger White said: “Within a volatile environment our sites have remained safe and operational and I wish to thank our employees who have worked tirelessly to support our customers and consumers in these testing times.
"I am pleased with the performance we have delivered against a very difficult backdrop which further demonstrates the underlying resilience of our people, business and brands.
"We expect the months ahead to be challenging for everyone, however I remain confident in our ability to navigate these very uncertain times.”
John Moore, senior investment manager at Brewin Dolphin, commented that margins have remained relatively resilient.
"However, unsurprisingly there is a warning around the impact of increased social restrictions in the final weeks of 2020, when more lockdown measures began to be imposed.
"Nevertheless, AG Barr has remained a cash generative business with a strong balance sheet, holding cash equating to nearly 10% of its market value - this puts the company in a good position when conditions settle to potentially look at expansion and acquisitions.”
Full year results are expected to be announced on 30 March.
