Barr (a.g.) Share Discussion Threads

[philanderer] 29/1/2020 19:19

Liberum (retains 'hold') yesterday:

While we love its iconic brand portfolio and the long-term focus of the management team, we continue to factor in what should be a painful Scottish deposit return scheme. Stage 2 of the deposit return scheme is due to be issued in the coming weeks or months, which will be an important update for AG Barr.




Scotland's Deposit Return Scheme will place a 20p deposit on all drinks (both soft and alcoholic) that come in PET plastic bottles, metal cans and glass bottles. Consumers will pay the deposit when they buy a drink and get it back when they return the container for recycling.

[philanderer] 29/1/2020 09:01

Hargreaves: the fizz is back at AG Barr

Irn-Bru maker AG Barr (BAG) is seeing its fortunes change after a miserable 2019, although Hargreaves Lansdown says the group still faces some challenges.

Last year was a low point for the drinks manufacturer, whose shares tumbled 25% after a summer profit warning. However, it has turned its fortune around and despite expecting to report full year revenues of £255m – which is 8.6% below last year – profit before tax will be at the top end of market expectations, at just over £37m, reflecting lower volumes but improved pricing.

Analyst Nicholas Hyett said higher prices dented volumes last year but ‘it looks like the improved margins and relatively healthy winter sales have added some fizz to the year end, giving management a cautiously optimistic note in this trading update’.

This year’s results will be against less demanding comparatives and Hyett pointed to a further headwind from the ‘increasingly health conscious consumer’.

‘We’ll be interested to see how new low sugar alternatives to the famously sugary Irn-Bru have been faring when full-year results come out in March,’ he said.

The shares rose 15.9% to 630.3p yesterday.

[meaty] 28/1/2020 17:30

Sold mine this morning. Suspect the 1901 buoyed xmas sales but the novelty has declined. Back in if it drifts lower.

[spacecake] 28/1/2020 16:30

Well, wonder what the story behind the wind turbine.

Nov 2016
AG Barr noted that the turbine would, as well as producing environmental benefits, also generate an estimated £120,000 for the local community, as part of the 20-year collaboration with wind power developer Farm Energy Partnership.

Less than 5 years and its taken down !

[philanderer] 28/1/2020 13:44

Irn-Bru and Rubicon maker AG Barr sees its shares bubble up after revealing profit fall is less than feared


Russ Mould at AJ Bell thinks that this strategy on maintaining prices rather than pushing volumes may prove to be a smart move in the long run.

'While the volume of drinks fell, average prices increased, helping drive today's guidance for profit to be at the upper end of expectations,' he said.

'As the company acknowledges, the backdrop remains difficult but it at least benefits from a strong balance sheet, underpinned by robust cash generation, enduring brands, settled management and a best-in-class manufacturing base.'

John Moore, senior investment manager at Brewin Dolphin, said AG Barr's update signalled that 'last year could be a temporary blip and the company is back on track'.

He added: 'Today's update from AG Barr should provide further reassurance to investors who were spooked by last year's profits warning.

'The normally reliable company is contending with a challenging market, including tough comparators, the sugar tax, and unfavourable weather over the past year or so - but it is still managing to deliver, assisted by a very strong balance sheet.'

[makinbuks] 28/1/2020 13:02

I agree a very positive update, well received and well done to all that held on. However, I think £37m pre tax puts them on a PE around 23x and dividend cover well under 2x so its highly rated at after todays rise

[philanderer] 28/1/2020 11:10

"...Irn-Bru maker AG Barr fizzed to the top of the FTSE 250 as it said full-year adjusted profit before tax was expected to be at the top end of current market expectations, just ahead of £37m."

ADVFN market update

[philanderer] 28/1/2020 09:29

Morning everyone.

A very nice surprise :-)

[jurgenklopp] 28/1/2020 08:20

This will cheer up Nick Train.

Very reassuring update.

[topvest] 28/1/2020 08:17

A nice update this morning.

[essentialinvestor] 21/1/2020 11:28

5.66 was my highest sale price last week, 5.70 was briefly available
on the bid yesterday before the sell off started.


Find this very difficult to call so not buying any back atm.

[philanderer] 21/1/2020 11:20

And looking to test that recent low again by the look of it.

Trading update next tuesday.

[philanderer] 20/1/2020 17:35

Indeed EI .. bad day today.

[essentialinvestor] 20/1/2020 14:24

They could have bought a large chunk under 5.20.

[philanderer] 20/1/2020 11:31

Company started buying back shares again last friday for cancellation.

[essentialinvestor] 13/1/2020 11:09

Nice recovery.


Phil, bought a few more Nichols fwiw.

[essentialinvestor] 10/1/2020 16:50

Well better day regardless, but find it a little strange when shed loads
of shares were on sale yesterday, not a single one was bought back.
Appreciate the buy backs conducted independently.

[philanderer] 10/1/2020 14:15

EI, no they haven't notified of any purchases since 3rd january. They usually announce the day after puchase.

Trading update confirmed for january 28th.

[essentialinvestor] 10/1/2020 08:12

Phil, what I would find a little concerning is there were no shares bought
back yesterday, no shares bought back with nearly 900k shares traded?.

[essentialinvestor] 09/1/2020 20:40

Wound not hang on his every word. He is a great investor for sure, but he can
make mistakes like everyone else. Pearson is a case in point.

The main issue with BAG is the rating does not allow for much disappointment.
Even at close of business today BAG sells on around 20X, cheap it ain't.

That may also be a reason BAG sold off so aggressively on that broker share price cut.