Barr (a.g.) Share Discussion Threads

[philanderer] 07/4/2024 00:10

Irn-Bru firm AG Barr set to axe around 100 jobs in Scotland as part of major overhaul

[makinbuks] 02/4/2024 09:27

The question is why is there cash on the balance sheet. Could they deploy funds to generate double digit ROC with modest gearing and if not then buy back shares because by definition you have too much capital employed

[philanderer] 02/4/2024 00:39

D Telegraph Questor

Update: AG Barr


Acquisitions that are bedding down well, a cooling of input cost inflation and future profit margin benefits from an investment programme in production and the supply chain all mean that AG Barr is showing growing profits and dividend with the prospect of more to come, especially as the drinks specialist has a net cash balance sheet.

Granted, this good news has been a long-time coming from the Cumbernauld-based company, which has a market value of £652m. Carbon dioxide shortages, sugar taxes and the pandemic have all tested management, not to say Questor’s patience, but our 6pc capital loss will be all but offset upon receipt of the final dividend of 12.4p a share on 7 June. This takes our total dividends received from the FTSE 250 constituent to 64.4p a share.

Better still, it feels like the company is coming through the worst.

Last month’s full-year results to the end of January show renewed like-for-like sales growth, a double-digit percentage operating margin and return on capital employed, as well as positive free cash flow. Better still, margins could start to expand once more as investment in efficiencies, the purchase of Boost and a reorganisation of how independent retailers are supplied help to fortify core brands such as Scotland’s iconic Irn-Bru, Rubicon and Funkin.

AG Barr is also deftly handling succession planning. When well-respected chief executive Roger White steps down at the end of this month, his replacement will be Euan Sutherland, previously a non-executive director at another soft drinks leader, Britvic.

A forward price-to-earnings ratio of around 15 for the fiscal year to January 2025, coupled with a forward yield of more than 3pc, looks like decent value.

Questor says: hold

[philanderer] 27/3/2024 17:09

Splendid day :-)

[philanderer] 27/3/2024 13:07

Liberum predicts rerating at AG Barr


Liberum is expecting shares in drinks company AG Barr (BAG) to rerate as the valuation remains significantly below its historic average.

Analyst Anubhav Malhotra retained his ‘buy’ recommendation and target price of 650p on the Citywire Elite Companies plus-rated maker of Irn Bru, which was trading up 1.8%, or 9.5p, at 523p.

Full-year results to the end of January were marginally ahead of expectations and there was no guidance for 2025, although the group noted that cost inflation had returned to normal levels and its supply chain programme is on track, which should support margins next year.

‘The market underappreciates both the sales growth and margin recovery potential of the business,’ said Malhotra.

‘Second-half 2024 saw material margin increases versus the first half. There is potential for additional share buybacks, special dividends, and further acquisitions due to the strong net cash position of £54m.’

Malhotra said the valuation remains ‘30% below historic average and 11%-12% below UK soft drink peers’.

‘As the group delivers on growth and margins, and lower interest rates make the consistent and growing 3.2% dividend yield more attractive, we expect the shares to rerate,’ he said.


citywire.com

[philanderer] 26/3/2024 19:16

Investors Chronicle

AG Barr bids adieu to CEO Roger White as sales surge


BUY

[makinbuks] 26/3/2024 18:10

Yes Roger White leaves on a high. I'm surprised at the size of the market reaction. I think a rating of 20X would be punchy but we're some way from that yet

[justiceforthemany] 26/3/2024 12:49

Historically this has traded at 20x earnings
Should be at 700p+

[makinbuks] 26/3/2024 09:32

Solid results, you got your wish on the dividend, justice! More of the same in 2024 based on the first quarter.

Personally I was surprised to see lack of growth in the alternative milk market overall. Growth at Moma impressive but still very small at £10m Revenue

The UK soft drinks market very soft too making the AG result all the more impressive

I did note the comment that while there was cash on the BS they have the capacity to gear up to 2.5X EBITA. Not sure why you'd mention that if strategically it wasn't being considered

[philanderer] 22/3/2024 19:54

Irn-Bru targets Gen Z by leaning in to nostalgia

[justiceforthemany] 22/3/2024 17:30

Dividend needs to be hiked to 15p minimum, cover is well over 2x

[philanderer] 22/3/2024 14:38

Results next tuesday

[philanderer] 17/3/2024 00:10

Irn-Bru maker AG Barr plans to cut almost 200 jobs

[philanderer] 15/3/2024 17:38

Shareprice back to where it was last friday..

Chart not so good .....lower highs and lower lows.

[philanderer] 07/3/2024 15:48

When the rest of the organisation can talk about the people strategy, you know you’re doing a good job’


Ahead of her appearance at the CIPD Scotland Conference, AG Barr’s Alison Gowen explains how the company behind Irn-Bru is involving its employees in every stage of its people initiatives – without losing its bottle


Alison Gowen has been HR director at AG Barr – the Scottish soft drinks manufacturer behind household staples such as Irn-Bru, Rubicon, Snapple and Tizer – since November 2022 and, in that time, has undertaken the first year of a transformative two-year people strategy, cleverly titled Be Your Best Barr None – a huge aspect of which is dedicated to listening to the company’s roughly 1,000-strong workforce and involving them in people initiatives.

peoplemanagement.co.uk/article/1864046/when-rest-organisation-talk-people-strategy-know-youre-doing-good-job

[philanderer] 27/2/2024 13:59

Lindsell Train have been dumping. Below 10%

[philanderer] 26/2/2024 14:18

Yes indeed, they've turned rubbish.

[harry_david] 26/2/2024 13:48

Eighthwonder, am coming round to your view, since I bought the shares moved nicely to 570 and now down most of the way to 520. Can only be the new man the last report was good and the rise deserved.

[eigthwonder] 26/2/2024 08:14

i think your threshold for "prestige" is breathtakingly low.

[harry_david] 23/2/2024 18:34

I agree justice, they will have done a serious appraisal of all candidates, this a prestige appointment.

[justiceforthemany] 23/2/2024 17:00

Like NICL the spread is ridiculous. To sell just because of him would be silly...Time will tell.

[philanderer] 23/2/2024 16:20

Turned into a right old dog lately. Chart support at 480p

Was 574p the day Sutherland was appointed Chief Exec on february 1st