Irn-Bru-maker A.G. Barr expects to achieve double-digit growth in adjusted pre-tax profit for its financial year ended 25 January 2025.
A.G. Barr noted in a trading update that this growth will be driven by an approximate increase of 13.5% in its full-year adjusted operating margin.
Revenue for the financial year is expected to be around £420 million (€501 million), representing nearly 5% year-on-year growth from £400 million (€477.2 million).
The investment director at AJ Bell, Russ Mould, stated, “The last decade has thrown a lot at AG 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 trading update suggests it is coping admirably.”
‘AG Barr’s trading update for the year ended 25 January is more than robust, confirming very healthy sales and volume growth, coupled with a margin rebuild in line with medium-term plans,’ Shore Capital stated in an analyst note.
The company will announce its full-year results on 25 March 2025.
Divisional Performance
A.G. Barr saw strong performances across all three of its core soft-drink brands: Irn-Bru, Rubicon and Boost.
Rubicon emerged as a ‘stand-out performer’ with double-digit revenue growth, while Irn-Bru delivered strong revenue growth and secured its position as one of the top five carbonates in the UK.
Boost stepped up profitability as its strategy, to focus on value over volume, and synergy benefits gained momentum in the second half.
Elsewhere, the company’s Funkin ready-to-drink business continued to grow via retail distribution gains and innovation.
A.G. Barr noted that its multi-year supply chain investment programme is on track, supporting brand growth, efficiency improvements, and synergy benefits.
Commenting on the company’s performance, chief executive Euan Sutherland said, “A.G. Barr is in line to deliver another year of strong top-line growth, margin improvement, and cash generation.
“These headline metrics highlight excellent progress towards our long-term financial goals. We have sustained brand momentum despite the well-trailed wider market pressures, and continue to make good progress towards our margin target.”
