"AG BARR (LSE:BAG)The makers of Scotland's other national drink were supposed to be left reeling when US President Trump declared war on them. The problem; Barrs' Irn Bru stains cannot be removed from his Scottish Hotel carpets. The greater ..."
" A G BARR (LSE:BAG) The makers of Scotlands other national drink were supposed to be left reeling when US President Trump declared war on them. The problem; Barrs Irn Bru stains cannot be removed from his Scottish Hotel carpets. The greater ..."
"AG BARR (LSE:BAG)LSE:BAG:AG Barr last featured in February where we proposed them as an ISA candidate. We've tried to avoid discussing price movements since, but their 'The Snowman' Xmas TV advert (in Scotland only?) makes them hard to ignore - ..."
" A G BARR (LSE:BAG) This lot last featured in February (link here) where we proposed them as an ISA candidate. We've tried avoid discussing price movements since but their 'The Snowman' Xmas TV advert (in Scotland only?) makes them hard to ..."
"AG Barr (LSE:BAG)We're winding up our ISA candidates with LSE:BAG:AG Barr, makers of Irn Bru and probably some other products too. There's something fairly interesting going on with this lot from a trend perspective and we've drawn a circle ..."
" A G BARR (LSE:BAG) We're winding up our ISA candidates with A G BARR, makers of Irn Bru and probably some other products too. There's something fairly interesting going on with this lot from a trend perspective and we've drawn a circle around ..."
"Aberdeen Asset ManagementThis continues our ISA candidate analysis, but there's something perhaps worth remembering with Scottish focussed companies.While south of the border, the media (sometimes) pretends to be sane, if north of the border the ..."
one extract which seems to ring true:-
"""The broker also reckons despite strong performances in international and Funkin sales, the businesses remain too small to contribute significantly to group growth.""
It's going to be hard to compensate for the steady decline in carbonated drinks.
The concerns I have, apart from I hate Irn Bru, are all highlighted in the article, namely :-
1. It's almost entirely selling into the UK and it's a saturated market.
2. Carbonates make up 73% of the turnover and I think this market is starting to decline.
3. The Ice Cream bus is too small to worry about and I doubt Unilever is shaking in it's boots
4. Rockstar -- well I can't see it making that much of an impact against the hundreds of different energy drink suppliers all chasing after Redbull.
5. Funkin looks interesting, but they had to pay a huge sum to get into this market and I know not very much about cocktail mixers which seems a tad nichy to moi.
6. As mentioned earlier re Iron Brew -- I guess the bagpipe brigade drink this by the gallon, but it tastes disgusting and like Haggis I don't see it penetrating too many parts of the world, let alone the UK.
The share price has fallen quite a bit, but still trades close to a P/E of 18 so for me I don't see much of a bargain, given that it's revenue, despite hefty acquisition, is not much different than it was back in 2014 -- it ain't growing that much. earnings growth to Jan16 was 0%, and is projected to be negative to Jan2017.
350 and I might be interested, but I suspect it won't fall that far -- but you never know with the stock market.
All in all, not a bad company, but not high on my list right now.
gamesinvestor, noticed your mention of Barr AG on RIO board. Thought you and other investors / potential investors in BAG might be interested in this article by well respected analyst Phil Oakley:
Another example where the headline writer has not read the article properly. With profits and margins up, the headline should say that the numbers act as a sweetener which is the opposite to what the headline actually says.
" With increasing retail competition, general price deflation and poor summer weather squeezing the market already, Scotland's LSE:BAG:AG Barr has had its fair share of headwinds over the past 12 months. Now, the soft drinks business behind brands ..."
The problem for high sugar drinks manufacturers is not in my opinion re-formulating their drinks to be sugar free;after all we have no shortage of diet pepsi,diet coke,sugar free Vimto etc drinks on the market.
The problem is getting customers to buy the sugar free product in the same quantities as they bought the high sugar original.The risk is that if they feel that with tax the original high sugar drink is too expensive;they will simply not buy the sugar free substitute as they don't like it & spend their money elsewhere.
The sugar tax seems very topical and very emotional right now, but is this more or less important than the fundamentals of AG Barr and it's current share price?
It's shares have been in decline since the start of 2015 (some 15 months now).
I'm not an investor here, but became interested because of the news items and the budget.
Looking at it with no axe to grind and with no vested interest, I do think the share price "potentially" has a long way to fall yet.
It's growth rate is in low single digits, yet it's P/E is up at 16-17. It also still, despite the last 15 months drop, trades over 3 times it's net assets. OK the branding is all important here, but even so that's still a pretty generous valuation.
Games -- Currently opting for Treatt which offers natural flavourings and fragrances.End of promotion!!
In common with other soft drink companies, Barr responded to concerns over the sugar in its drinks some time ago by introducing sugar free versions. If you check the supermarket shelves you will find that most of the sweet fizzy drinks on the shelves are sugar free or low sugar. Bearing in mind that these drinks are also fat free, you can argue that these drinks are quite healthy. It is the chocolate bars such as Mars which should be causing concern as these have high levels of both sugar and fat and are widely consumed by children. I do not think that Osborne understands the problem.
As ever, the market has over-reacted. There are many strategies open to Barr to compensate for the "sugar tax" (e.g. the use of artificial sweeteners) though I concede that this will take time and, in particular, caution, in order to avoid damage to the brand. Fortunately Osborne has allowed a reasonable time period for these changes to take effect.
So, short-term, I think the share price could well fall further. Long-term this share is still a buy.
"Â A G BARR (LSE:BAG)Â starts our week looking at the Beverages Sector. Something interesting has been happening with the share this year as the share price has been reacting to the BLUE downtrend despite being nowhere near it. Sometimes this can ..."
"A.G.BARR (LSE:BAG) are worth a quick revisit. As the chart shows, the fizz has come off their price movements once it dropped below the trend in October 2014. However, the share hasn't exactly fallen off a cliff despite plenty of opportunity ..."
Barr's set up a promotional tent near George square selling all sorts of branded items, such as pretend kilts. Maybe some of the athletes might acquire a taste for it and introduce it back home to their disparate nations!
IRN-BRU maker AG Barr will tomorrow shake off the disappointment of its failed £1.4 billion reverse takeover of Britvic by reporting a summer of fizzing sales.
Revenues at the Cumbernauld-based firm are expected to have surged by almost 10 per cent in its second quarter after drink sales soared during the heatwave. First-half sales are expected to be up 4.9 per cent at £127.5 million.
Analysts at Panmure Gordon forecast Barrs adjusted pre-tax profits rising by 17 per cent to £17.3m.
However, despite the summer weather boost, Barr has warned investors to expect a very competitive market in its second half, with heavy promotions and discounts.
The firms growth ambitions were dealt a blow in July when Fruit Shoot, J2O and Tango-maker Britvic snubbed a tie-up and decided to go it alone, despite more generous terms from its rival.
Barr has opened a factory in Milton Keynes, which should help slash costs and boost growth in England. Analysts at Canaccord Genuity said the plant will be one of the most-efficient soft drink manufacturing facilities in the world.
Barr had been approached to buy Lucozade and Ribena, before drugs giant GlaxoSmithKline offloaded them to Orangina Schweppes owner Suntory in a £1.35bn deal earlier this month.
Shore Capital analyst Phil Carroll said: We expect Barr to now focus on organic growth and bedding in its new factory.
So Barr reports growth ahead of the market, Investec retains its "add" recommendation, and the share price goes down.
Pah. This is the nearest thing we have in the UK to Warren Buffet's favourite CocaCola. There's no way that sales of its key brand Irn-Bru are going to collapse so there's minimal downside risk. The only way is up. Buy.
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