AG Barr backs FY expectations as interim profits, revenue grow

Irn-Bru maker AG Barr backed its full-year expectations on Tuesday as it posted a rise in interim profit and revenue and lifted its dividend.

In the 26 weeks to 27 July, adjusted pre-tax profit rose 8.5% to £29.3m on revenue of £221.3m, up 5.2%. Revenue growth was driven by the soft drinks business, which saw a 7% increase, with Rubicon and Irn-Bru delivering both volume and price gains.

The interim dividend per share was boosted 17% to 3.10p a share.

Reported pre-tax profit declined 10.4% to £24.9m but Barr said this was after £4.4m of one-off costs related to the closure of Barr Direct and the integration of Boost.

Chief executive Euan Sutherland said: "My first few months with the business has further cemented my view that AG Barr is an excellent business with exciting, tangible and deliverable growth opportunities. I am pleased to report a strong set of first half results. The business has delivered both revenue and profit growth as well as good progress on our key strategic margin rebuild programme.

"We continue to invest in our supply chain to build the capacity to support our growth plans and manufacture more volume in-house. This will deliver tangible benefits including enhanced margin and improved service resilience.

"We anticipate a strong H2 performance from our four core brands - Irn-Bru, Rubicon, Boost and Funkin - in particular, with current trading momentum underpinned by further marketing and innovation activities."

Sutherland said guidance for 2024/25 revenue and operating margin was unchanged.