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AG Barr PLC on Tuesday said it is anticipating a strong performance from its core products as it reported revenue growth but a profit fall due to higher operating costs. The Cumbernauld, Scotland-based branded beverage business behind Irn-Bru said revenue increased 5.2% to £221.3 million in the six months to July 27, from £210.4 million a year prior. Pretax profit however fell 10% to £24.9 million from £27.8 million. Pertinently, operating costs increased 24% to £64.8 million from £52.2 million. Cost of sales increased to £132.2 million from £131.0 million. AG Barr increased its first-half interim dividend by 17% to 3.10 pence per share from 2.65p. It said this performance ‘was in line with our expectations and we have ambitious plans for H2 and beyond, which are consistent with our long term growth strategy...We are confident that, assuming a reasonably settled external environment, the execution of our plans will result in a strong H2 and the delivery of a full year performance in line with current market expectations’. Chief Executive officer Euan 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.’ AG Barr shares were 2.7% lower at 644.00p each on Tuesday morning in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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