Monday, September 25, 2023
HomeEconomyIrn-bru makers warn of profit pressure as inflation soars

Irn-bru makers warn of profit pressure as inflation soars

By Sinchita Mitra

(Reuters) – The British orange soda maker Irn Bru said on Tuesday its profit margins took a hit in the second half as it grappled with rising costs and Consumer restrictions

AG Barr imports raw materials such as mangoes and aluminium, but chief executive Roger White is dismissive of any immediate or short-term impact on sterling’s fall.

“We will just see how the pound performs, we are hedged in the short term, but we will continue to replace those hedges. We just have to move with the market,” White told Reuters.

Sterling fell to a record low against the dollar on Monday as investors worried that Britain’s new economic plan would hurt its finances.

Several companies have warned about the crisis, which has been hit harder by rising commodity and energy prices due to the Russia-Ukraine conflict.

AG Barr raised prices on its products in February and will continue to monitor costs throughout the year, White said.

The beverage maker expects inflationary pressures to continue into the year and affect consumer buying behavior.

However, the company still expects full-year profit to grow due to cost control and sales growth.

The company’s interim dividend increased by 26%, and the adjusted profit before tax was 26 .3 million GBP($25.36 million) for 36 end of July Weeks 31 compared to a year ago .£600,000.

Its shares were down 1% at 5p London GMT 492.

($1=0.9246 GBP)



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