AG Barr reports £10m revenue loss from supply chain issues

AG Barr, the manufacturer of Irn-Bru, reported that supply chain disruptions cost the company approximately £10 million in revenue during the first half of the year. The company attributed these losses to a combination of internal issues related to a capability and capacity change programme and external manufacturing bottlenecks from a third party.

Despite these constraints, the Cumbernauld-based company saw total revenues rise 8.5% to £247.4 million for the six-month period ending in August. Adjusted pre-tax profits also increased by 2.6% to £36.1 million. The company noted that the successful integration of recently acquired brands, Fentimans and Frobishers, helped offset revenue losses and cost inflation.

Chief Executive Euan Sutherland stated that supply chain operations have since normalised. The company expects stronger revenue and profit growth in the second half of the year as it continues to invest in manufacturing capabilities and brings more production in-house to prevent future shortages.