47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 62
A.G. BARR p.l.c. Annual Report and Accounts 2025
R I S K M A N AG E M E NT CO N TI N U ED
Strategic priorities:
Connecting with consumers
Movement:
Risk
Impact
Gross risk movement during the year
Financial risks
The Group’s activities expose it to a variety
No change
of financial risks which include market risk
(including medium-term movements in
exchange rates, interest rate risk and
commodity price risk), credit risk and liquidity
risk which could adversely impact business
performance. Deterioration of internal
financial controls could lead to financial loss.
Building brands
No change
Driving efficiency
Increased
Controls and mitigating actions
Financial risks are reviewed and managed by
the Treasury and Commodity Committee, which
seeks to minimise adverse effects on the Group’s
financial performance through hedging known
currency exposures throughout the year.
Net risk
rating
Moderate
The Group’s finance team reviews cash flow
forecasts throughout the year, with headroom
against banking covenants assessed regularly.
The finance team uses external tools to assess
credit limits offered to customers, manages trade
receivable balances vigilantly and takes prompt
action on overdue accounts.
Robust operational and system controls and
processes are in place to ensure an appropriate
control environment is maintained, with oversight
from the Board and the ARC. Internal and
external audits provide evidence and support
for a strong internal control framework.
Loss of continuity
of supply of major
raw materials
The loss of continuity of supply of raw
material ingredients and/or packaging
materials could impact our ability to
manufacture, with an adverse impact
on the Group’s sales and operating profits.
No change
There is a robust supplier selection process in
Moderate
place. Supplier performance is monitored on
an ongoing basis and audits are undertaken
for major suppliers. Dual sources of supply are
sourced wherever possible. An upstream sourcing
database is in place.
Commodity risks are managed by the
procurement team and reviewed by the Treasury
and Commodity Committee. Contingency
measures are in place and are tested regularly.
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Building trust
Decreased
New
Net risk movement
during the year
