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AG Barr PLC on Tuesday reported an increase in half year revenue led by Boost, with momentum picking up in the second quarter. The Cumbernauld, Scotland-based soft drink and energy drink manufacturer expects revenue of around £228 million for the 26 weeks ended July 26, up 3.0% from £221.3 million a year ago. The firm said trading momentum increased as the half progressed, with several record volume weeks in the second quarter. Brand revenue performance was led by Boost, bought in December 2022, which delivered strong double-digit growth. Irn-Bru and Rubicon were flat in the half, with a stronger performance in the second quarter. Funkin saw continued off-trade growth partly mitigating challenges in on-trade, with the overall trend improving during the half year. First half adjusted operating margin is anticipated to be ahead of last year at 15.0% compared to 13.0%, driven by ‘improved manufacturing efficiencies, on-going benefits from our strategic business improvement initiatives and continued disciplined cost management.’ AG Barr said revenue and profit growth expectations for the full year are unchanged. ‘We are confident that H2 will see a strong rate of year-on-year revenue growth. We have made excellent progress with operating margin during H1 and expect to deliver a full year result in line with expectations after taking into account a planned higher level of marketing activity in H2,’ the firm added. In the financial year to January 25, 2024, AG Barr reported revenue of £420.4 million and pretax profit of £53.2 million. In addition, AG Barr announced the £15.1 million acquisition of a 50.1% equity stake in Innate-Essence Ltd. Innate-Essence is the home of The Turmeric Co, a brand in the ‘functional shots’ market, as well as a number of other speciality health drinks. ‘This is consistent with the company’s strategy of acquisitions and innovation in high growth, health focused, functional beverage categories,’ AG Barr said. The deal, funded from cash resources, is not expected to have a significant impact on revenue or profit in the current financial year. AG Barr said it has also concluded the sale of the Strathmore brand and the Forfar production site to Ty Nant, negatively impacting revenue in the short-term but not profit. Chief Executive Officer Euan Sutherland said: ‘Trading improved during H1 and we enter H2 with strong momentum and continued progress on margin improvement as our strategic initiatives continue to deliver. I am also excited about our expansion into the functional beverage segment working alongside Thomas Robson-Kanu and the Innate-Essence team. Our full year guidance remains unchanged and in line with market expectations.’ Shares in AG Barr eased 0.4% to 692.00 pence each in London on Tuesday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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