The soft drinks producer said the ‘impulse’ channel, which consists of customers making unplanned purchases and accounts for 40% of the total revenue, has been “significantly” reduced.
Another area to take a big hit has been the ‘out of home’ consumption, as bars and pubs are closed, while ‘take-home’ purchases have been “more resilient” albeit “more volatile than usual”.
The Irn Bru seller said it is taking cost-cutting measures, such as scaling back marketing, furloughing employees and cutting the board’s salary by 20%.
It is also not recommending a final dividend for the financial year to 25 January.
The period ended with £11mln in cash and £60mln drawn down from a revolving credit facility.
Full-year revenue dropped 8% to £255mln, while profit before tax slipped 17% to £37mln due to weaker consumer sentiment caused by political uncertainty, plus strong comparatives in the exceptionally hot summer of 2018.
Analysts at Liberum, which have a ‘hold’ recommendation and 580p target price, said AG Barr is “well prepared for this challenge” thanks to the cost-saving plans.
“We believe AG Barr can sustainably grow organic sales at circa 3% per annum in a ‘normal year’, driven by distribution gains and innovation.”
Shares dropped 3% to 492.5p on Wednesday morning.
Published at Wed, 08 Apr 2020 08:48:00 +0000-AG Barr warns on sales due to lockdown measures