Drinks group AG Barr (BAG) was badly knocked by the coronavirus crisis during the half-year to 25 July. The Funkin brand – which produces cocktail mixers – was particularly affected, with sales sliding by more than a third to £6.5m as the hospitality sector shut its doors during lockdown. And despite a recovery plan underway for the Rubicon juice line, sales here contracted by 9 per cent amid Covid-19’s disruption to the crucial Ramadan period.
That said, flat drinks were more affected by the virus than their fizzy counterparts. According to IRI Marketplace, the total value of UK carbonated soft-drinks rose by 7.3 per cent during the period, while stills slumped by a proportionate amount. That divergence was evident, to an extent, in AG’s numbers; while stills and water tumbled by two-fifths to £13.1m, carbonates edged up slightly to £93.6m – helped by a 1 per cent improvement for the flagship Irn-Bru beverage.
Statutory earnings were slammed by £11.5m in exceptional charges. These pertained, in large part, to a £10m write-down on AG’s Strathmore water brand and assets, after being hit by the challenges facing restaurants and bars.
FactSet consensus estimates put EPS at 20.9p for the year to January 2021, from 26.5p in FY2020.
| AG BARR (BAG) | ||||
| ORD PRICE: | 426p | MARKET VALUE: | £ 477m | |
| TOUCH: | 424-426p | 12-MONTH HIGH: | 627p | LOW 373p |
| DIVIDEND YIELD: | nil | PE RATIO: | 23 | |
| NET ASSET VALUE: | 187p* | NET CASH: | £23.9m | |
| Half-year to 25 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 123 | 13.5 | 9.57 | 4.00 |
| 2020 | 113 | 5.10 | 1.71 | nil |
| % change | -8 | -62 | -82 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £92.3m or 82p a share | ||||
