(Adds CEO comment, details on Scottish DRS, background on
beverage makers, analyst consensus)
March 28 (Reuters) - A.G. Barr on Tuesday warned
of an operating margin hit in the short term from inflationary
pressures and acquisitions, even as the Irn-Bru maker forecast
annual profit growth in line with its expectations.
Shares of the company were down about 1.5% in early trade.
Beverage makers have been grappling with high costs of
energy and raw materials, while consumers are also cutting back
spending on non-essential items amid sticky inflation.
High inflation and the planned introduction of the Scottish
Deposit Return Scheme (DRS) in August 2023 have potential to
impact consumer purchasing behaviour, CEO Roger White said in a
statement.
Consumers in Scotland will pay a 20 pence deposit under the
scheme when they buy a drink in a single-use container, which
then get back when they return the empty bottle or can.
Most beverage companies have hiked prices in a bid to pass
on some of the costs to their consumers. Fevertree Drinks , which makes tonics and cocktail mixes, said it had
raised prices of its products to deal with high costs, while
Coca-Cola HBC AG , one of Coca-Cola's many bottlers
worldwide, said in February it would increase prices.
A.G. Barr reported a 13.3% rise in adjusted profit before
tax for the year ended Jan. 29 to 43.5 million pounds ($53.58
million).
Analysts on average had expected a profit of about 42.9
million pounds, according to a company-compiled consensus of
analysts' forecasts.
($1 = 0.8119 pounds)
(Reporting by Radhika Anilkumar in Bengaluru; Editing by
Subhranshu Sahu)
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