After AG Barr’s profit warning is it time to can the Irn Bru maker?
AG Barr is about much more than just the iconic orange tipple. Soft drinks maker AG Barr PLC (LON:BAG) surprised the market with its earlier warning about very soft first-half trading, but has the Scottish company lost its fizz? There were several issues bottled up at the heart of the profit decline, as the FTSE 250 group struggled with the hangover from an “unprecedented year for soft drinks” last year as a heatwave combined with a CO2 shortage and after-shocks from the soft drinks sugar tax. More than £250mln was drained from Barr’s market value on Tuesday as it warned that lower sales in the first half are unlikely to be fully fixed in the second half and so profits for the full year will be down 20%. “Relying on the Scottish weather for sales is not much of a strategy,” snarked analyst Neil Wilson at Markets.com, a Scotsman who admits he has not “dabbled in a swally” of Irn Bru since he was in short breeks.