A.G. Barr plc (LON: BAG) said on Tuesday that its full-year profit posted a 30.5% decline amidst the ongoing Coronavirus pandemic that weighed on demand. As the health emergency pushed the countrywide pubs into temporarily shutting down, the Cumbernauld-based company saw a sharp decline in sales.
The ongoing COVID-19 crisis has so far infected more than 4.3 million people in the United Kingdom and caused over 126 thousand deaths. In its earlier report published in September, A.G. Barr had posted £5.1 million of profit before tax for H1.
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A.G. Barr shares tanked more than 1% in premarket trading on Tuesday and lost another 2% on market open. The stock is now trading at 509 pence per share versus 521 pence per share at the start of the year.
A.G. Barr values its net cash at £50 million
The maker of the Scottish carbonated soft drink Irn-Bru acknowledged that 2021 was unlikely to be a normal year but expressed confidence that some recovery was expected in the upcoming months.
A.G. Barr valued its net cash at £50 million at the end of the year. The British firm recorded a 9.7% decline in its full-year Irn-Bru sales. As per A.G. Barr, out-of-home revenue took a significant hit due to the virus outbreak, but it was partially offset by the take-home category that showed resilience last year.
Chief Executive Roger White commented on the financial update on Tuesday and said:
“We closed the year in strong financial health, with our brands and business poised for growth on a like-for-like basis, and with the clear intention to recommence dividend payments in 2021.”
In separate news from the United Kingdom, Royal Mail said on Tuesday that it will pay a one-off final dividend.
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A.G. Barr reports £26 million of pre-tax profit
A.G. Barr reported £26 million of full-year pre-tax profit versus the year-ago figure of £37.4 million. Sales, the London-listed company added, registered at £227 million or 11.2% lower than last year.
Other prominent figures in A.G. Barr’s financial report on Tuesday include an 11.5% decline in Funkin sales. The company reaffirmed its commitment to cost conservation but highlighted that it will continue to invest in marketing.
A.G. Barr performed fairly downbeat in the stock market last year with an annual decline of close to 10%. At the time of writing, it is valued at £570 million and has a price to earnings ratio of 27.26.