AG Barr cites supply-chain glitches for £10m sales dip but posts revenue growth

AG Barr attributed a £10 million loss in sales to a mix of internal capability-capacity adjustments and problems with a third-party manufacturer. Despite the setback, the company posted an 8.5% rise in total revenue to £247.4 million for the six months ending 1 August, and adjusted pre-tax profit grew 2.6% to £36.1 million year-on-year. It said the integration of recently acquired brands helped offset investment costs and Middle East-linked cost inflation that was not fully passed to customers.

CEO Euan Sutherland highlighted progress on strategic priorities and strong brand performance, even though supply constraints affected service during the peak summer months. The firm added that most of its Cumbernauld operational change programme is finished and the Milton Keynes manufacturing upgrade remains on schedule, giving confidence in a more stable supply chain going forward.