Irn-Bru-maker A.G. Barr has confirmed a strong first-half revenue performance, with revenue growth of 5.2%, to £221.3 million (€277.70 million).
The UK-based multi-beverage business, which includes Rubicon, Funkin and Boost, published its interim results for the 26 weeks ending 27 July, with figures matching full-year expectations.
Pre-Tax Profits
Profit before tax of £24.9 million (€29.8 million) – up by 8.5% – is after £4.4 million (€5.28 million) of one-off costs related to the closure of Barr Direct and the integration of Boost.
In particular, the results noted a strong performance across its soft-drink business, wherein revenue increased by 7%, driven by both volume and price.
Rubicon was the standout performer, delivering double-digit growth in both volume and value.
Ready-to-drink (RTD) cocktails in the take-home market grew by 9.1% – well ahead of the wider pre-mixed alcoholic drinks’ market growth rate of 2.7%.
Growth Plans
Funkin’s growth was ahead of both market segments, and it remains the number-one brand in the RTD cocktail market.
Recently appointed chief executive Euan Sutherland said that he was “pleased” by the 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,” Sutherland said. “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.
“Guidance on 2024/25 revenue and operating margin is unchanged. We remain confident of continued, sustainable growth over the long term, in line with our strategic ambitions.”
Analyst Viewpoint
Commenting on A.G. Barr’s results, Russ Mould, investment director with AJ Bell, said, “The last decade has thrown a lot at A.G. Barr, in the form of new regulations on sugar content, COVID-19, carbon dioxide shortages, and input cost inflation – and they are all before the usual issues of competition and changing trends in consumers’ tastes – but the Scottish firm’s latest set of first-half results suggest it is coping admirably.
“Sales, profits, and the dividend are all up, and although the share price is not fizzing higher today, it already stands at a five-year high, in recognition of how both revenues and net earnings could set new all-time peaks in the next fiscal year, to January 2026, if analysts’ forecasts prove accurate.”
