Shares in Irn-Bru maker AG Barr fell by more than 28% on Tuesday after the company issued a profit warning, citing poor weather and challenges with key brands. The Cumbernauld-based firm said it expects sales to drop by 10% and profits by up to 20% compared to a strong 2018.
In a pre-close trading update, AG Barr said trading so far this year had been below expectations, exacerbated by specific brand challenges, particularly in its Rockstar energy and Rubicon juice drinks. The company also blamed disappointing spring and early summer weather, most notably in Scotland and northern England, and tough comparatives with last year's peak summer period.
Rubicon has faced difficulties since the introduction of the sugar tax, requiring recipe changes that sparked customer backlash over taste. Rockstar has been hit by a crackdown on high-caffeine drinks, with several supermarkets banning sales to under-18s.
Chief executive Roger White said the cocktail mixer division Funkin was growing well, but the rest of the business had a challenging start. He added: 'Weather comparatives and trading, particularly in the impulse on-the-go market, have been even tougher than expected.' The company plans to launch three new Rockstar drinks and improve Rubicon recipes, but warned benefits will not be felt until later in the second half of the financial year.
Sales for the 26 weeks to 27 July are expected to be about £123m, down 10% on last year, with further one-off costs expected later in the year. Shares were trading at 623p by 16:30.
